Prepare and interpret a trial balance
List ledger balances on their debit or credit sides and explain what equal totals do—and do not—show.
Cambridge IGCSE Accounting 0452 / (9–1) 0985, 2027–2029 Version 1. These lessons follow the 2027–2029 syllabus only; the separate 2026 syllabus update is not yet mapped. Written practice is self-checked, not an official Cambridge grade. Full timed-paper practice and human subject-teacher review remain pending.
Before you begin
- No previous accounting study is assumed. Keep the business, transaction and accounting period in view, and distinguish a resource, a claim and a performance result.
Work on paper. Try each question before revealing help, and explain why your method works.
Quick readiness check
Which balance normally appears in a trial balance's debit column?
What you will learn
- Prepare a trial balance from given balances
- Explain how it checks arithmetical agreement
- Identify what a balanced trial balance cannot prove
Extract the ledger balances
A trial balance lists ledger balances at a stated date in debit and credit columns. Classify each balance by account type and place it on its normal side: assets and expenses are commonly debit balances, while liabilities, equity and income are commonly credit balances.
Add both columns. Equal totals show that the debit and credit totals agree arithmetically, which helps locate some posting and balancing errors and provides a starting point for financial statements.
Agreement is a check, not proof
Unequal totals indicate an error or an omitted one-sided entry that needs investigation. A difference may be temporarily placed in a suspense account while the records are checked. If a debit balance is mistakenly placed in the credit column of the trial balance, move it to the debit column and recalculate both totals; correcting a $370 balance changes the difference by $740.
Equal totals do not prove that every transaction is recorded correctly. A complete omission, a wrong account of the same class, equal offsetting errors or a transaction reversed on both sides can leave the totals equal.
Pause and explain
A trial balance agrees. Which conclusion is justified?
Worked example
Prepare the trial-balance totals from Bank $1,400 debit, Receivables $800 debit, Purchases $2,000 debit, Rent $300 debit, Capital $3,000 credit, Sales $1,200 credit and Loan $300 credit.
Show the worked solution
- Debit total = 1,400 + 800 + 2,000 + 300 = $4,500.
- Credit total = 3,000 + 1,200 + 300 = $4,500.
- Both columns agree, but this does not prove there are no errors.
Answer The trial balance totals are $4,500 debit and $4,500 credit.
Try a topic test
Choose Easy, Normal or Difficult. Save your answers and open worked review after finishing.
Test this topic →From guided practice to a new situation
Write your answer and reasoning first. Use a hint only if you are stuck. The model solution is for self-checking; your written work is not automatically marked.
Classify Bank $950, Inventory $1,200, Wages $600, Capital $2,000 and Sales $750, then total each side.
Give me a hint
Use the normal balance side for assets, expenses, equity and income.
Compare my reasoning
- Debit: Bank 950, Inventory 1,200 and Wages 600; total $2,750.
- Credit: Capital 2,000 and Sales 750; total $2,750.
- The trial-balance columns agree at $2,750 each.
Debit $2,750; credit $2,750.
Look for these in your work
- Balances classified
- Both totals correct
- Agreement stated
A draft trial balance totals $4,800 debit and $5,540 credit because a $370 debit balance was entered in the credit column. Amend the trial balance.
Give me a hint
Move the balance to its correct column, then recompute both totals.
Compare my reasoning
- The debit total increases by $370: 4,800 + 370 = $5,170.
- The credit total decreases by $370: 5,540 − 370 = $5,170.
- The $740 difference closes because both sides change by $370 in opposite directions.
Amended totals are $5,170 debit and $5,170 credit. The error was in the trial-balance columns, so move the balance and recalculate.
Look for these in your work
- Correct side selected
- Both totals amended
- Doubled difference explained
A business omitted an entire $320 credit purchase from the books. Explain whether a trial balance would necessarily reveal it.
Give me a hint
Consider whether either side of the transaction reached the ledger.
Compare my reasoning
- Neither the debit purchase nor the supplier credit was recorded.
- Both sides are missing, so debit and credit totals are each understated by $320.
- The trial-balance totals can still agree even though the records are incomplete.
The trial balance would not necessarily reveal a complete omission because both debit and credit entries are missing by the same amount.
Look for these in your work
- Both sides identified
- Equal effect explained
- Limitation stated
Common mistakes
- Putting every asset or expense on the credit side
- Treating equal totals as proof that the books are error-free
- Including transaction totals instead of closing ledger balances
What can you explain now?
A trial balance totals $8,420 debit and $8,170 credit. What does the difference show?
Compare with the explanation
The debit column exceeds the credit column by $250 and needs investigation
Unequal totals show an arithmetical difference; the cause still has to be found.
After trying it yourself, choose your next review. This is your self-assessment.
Your review choice appears on Today. Sign in to sync it across devices.
Make it stick
What does a trial balance test, and what important error can it miss?
If you needed the solution, close it and solve the problem again from a blank page. A correct answer is stronger when you can explain the reason for each step.