[geehar]

[B]Is it Total Last year trial balance not include in this month trial balance[/B]. Why..
My trial balance is balance but not equal with the total of income.
So, I ‘m confused because some of the income is from the last year project. As I know the total of trial balance is equal to total income.

I double check with my ledger report, also balance and the total ledger report include the last year statement…so I’m wondering why my total trial balance is not same with my income….Please help me..

[pready]

The trial balance and your net income are two different things.

Your trial balance is to determine if your debits and your credits are equal. Then you have to do your end of period adjusting entries such as depreciation, unearned revenue that is earned, supplies that have been used, etc...

After the adjusting entries are made then you do an adjusted trial balance. After the adjusted trial balance is don you can do your Income Statement and your Balance Sheet.

Net Income is your revenues minus your expenses and dividends paid in the period.

Some of your accounts in your adjusted trial balance go in your Balance Sheet and the rest go in your Income Statement. In other words not all your aacounts from your adjusted trial balance are used in your Income Statement.

[Mihesh148]

Trial Balance are made up of accounts that are in accounting ledger. Trial Balance must have equal debits and credits to balance. But a trial balance can be out of balance for number of reasons. Transposition of numbers. Entering a wrong amount for the debit or credit of an account. Net income is the difference between revenues and expenses on the income statement. Net income is never shown on the trial balance but the revenues and expense balances are on the trial balance not their outcome (net income or net loss).