Lesson Notes By Weeks and Term - Senior Secondary 1

Trial balance I

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Term: 2nd Term

Week: 8

Class: Senior Secondary School 1

Age: 15 years

Duration: 40 minutes of 2 periods each

Date:       

Subject:      Financial accounting

Topic:-       Trial Balance I

SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to

  1. Define trial balance
  2. Prepare trial balance using provided details

INSTRUCTIONAL TECHNIQUES: Identification, explanation, questions and answers, demonstration, videos from source

INSTRUCTIONAL MATERIALS: Videos, loud speaker, textbook, pictures

INSTRUCTIONAL PROCEDURES

PERIOD 1-2

PRESENTATION

TEACHER’S ACTIVITY

STUDENT’S ACTIVITY

STEP 1

INTRODUCTION

The teacher reviews the previous lesson on exercises on accounts and ledgers

Students pay attention

STEP 2

EXPLANATION

She explains the meaning of trial balance

 

Students pay attention and participates

STEP 3

DEMONSTRATION

She shows the learners how to prepare a trial balance using provided details

Students pay attention and participate

STEP 4

NOTE TAKING

The teacher writes a summarized note on the board

The students copy the note in their books

 

NOTE

TRIAL BALANCE

A trial balance is a bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that are equal. A company prepares a trial balance periodically, usually at the end of every reporting period. The general purpose of producing a trial balance is to ensure that the entries in a company’s bookkeeping system are mathematically correct.

 

Types of Trial Balance

There are three main types of trial balance:

  • The unadjusted trial balance
  • The adjusted trial balance
  • The post-closing trial balance

All three of these types have exactly the same format but slightly different uses. The unadjusted trial balance is prepared on the fly, before adjusting journal entries are completed. It is a record of day-to-day transactions and can be used to balance a ledger by adjusting entries.

Once a book is balanced, an adjusted trial balance can be completed. This trial balance has the final balances in all the accounts, and it is used to prepare the financial statements. The post-closing trial balance shows the balances after the closing entries have been completed. This is your starting trial balance for the next year.

WORKED EXERCISS ON TRIAL BALANCE

Example 1:

The following are the ledger balances of Ram Das Pvt. Ltd. as on the date 31 March, 2022. Prepare the Trial Balance using the following balances.

 

SOLUTION

Example 2:

Prepare a Trial Balance for Shining Brothers Pvt. Ltd. at March 31st, 2017?

 

Solution:

 

Example 3:

There are several Mistakes in the Umer & Brothers (Pvt.) Ltd. Trial Balance. You are requested to identify Errors and make corrected Trial Balance?

Solution:

EVALUATION :   1. Explain the trial balance

  1. Explain the types of trial balance
  2. Prepare Trial Balance as on 31.03.2012 from the following balances of Ms. Maliha Afzal:

Drawings $ 74,800 Purchases $ 295,700 Stock (1.04.2011) $ 30,000

Bills receivable $ 52,500 Capital $ 250,000 Furniture $ 33,000             

Discount allowed $ 950 Sales $ 335,350 Rent $ 72,500                  

Freight $ 3,500 Printing charges $ 1,500 Sundry creditors 75,000

Insurance $ 2,700 Sundry expenses $ 21,000 Discount received $ 1,000

Bank loan $ 120,000 Stock (31.03.2012) $ 17,000 Income tax $ 9,500

Machinery $ 215,400 Bills payable $ 31,700

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively