Also, I have two more question about this topic..

1. explain the purpose of the trial balance
2. explain why the trial balance is used to make adjustment to accounts



Thanks a lot

"Extracted from the accounting records..." that sounds like how a book would talk, meaning I'm a bit suspecting these might actually be homework questions. If so, we do not just answer homework questions for people, but rather check their work or let them know if they're on the right track, etc.

I may be wrong, but if you could clarify this...

The purpose of a Trial Balance is to verify that your Debits equal your Credits.

Quote:

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Originally Posted by morgaine300

"Extracted from the accounting records..." that sounds like how a book would talk, meaning I'm a bit suspecting these might actually be homework questions. If so, we do not just answer homework questions for people, but rather check their work or let them know if they're on the right track, etc.

I may be wrong, but if you could clarify this...

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Actually you are right the question is from a book, but it is not a homework question, I am doing assigment about this particular topic and I have done a bit of it but it seems that it is not enough, so I thought that I could seek some help from you guys.

So if you give me a raugh answer for each question, that will help me a lot


THanks

It would help a whole lot if I knew what you'd already done that is "not enough." Otherwise I could just be repeating everything you've already done all over again. It also helps to know someone else's thoughts.

The trial balance is nothing but a list of the current balances in all of the accounts. Since it's generally done at the end of a period (though it can be done any time if you want to), then that would be the balances at the end of the period.

It's used for adjustments because you sometimes need to know a balance in an account in order to do the adjustment, though not all the time.

As for the purpose of a trial balance, yes, one purpose to to make sure all the debits & credits match. You can check that without pulling all the numbers off the ledger and making a trial balance, but it's nice to have it all summarized, and you will end up using it for other purposes. Like what I just said - to use some of the balances for adjustments. There can be other purposes, including stuff I might not even think of. Since it's a listing of every account balance that exists at the time, it can serve any purpose you like that requires knowing what a balance is, right there all in one place in front of you.