What are the debit items in trial balance?

  • Rules to prepare the Trial balance
  • Steps to prepare Trial balance
  • Specimen of Trial balance
  • Example of Trial Balance

A trial balance is a conglomerate of or list of debit and credit balances extracted from various accounts in the ledger including cash and bank balances from cash book. The rule to prepare trial balance is that the total of the debit balances and credit balances extracted from the ledger must tally. Because every transaction has a dual effect with each debit having a corresponding credit and vice versa.

Therefore, at the end of the accounting period or at the end of each month, the balances of the ledger accounts are extracted, and trial balance is prepared to test as to if the total debits are equal to total credits or not.

Rules to prepare the Trial balance

The rule to prepare the Trial balance is an equation which is as follows:

Total Debit Entries = Total Credit Entries

Debit Credit
  • All Assets (Cash in hand, Cash at Bank, Inventory, Land and Building, Plant and Machinery etc.)
  • Sundry Debtors
  • Expenses (Carriage Inward, Freight, Rents, rebates and rates, Salary, Commission etc.)
  • Purchases
  • Losses (Depreciation, Return inwards, Profit and loss A/c (Dr.), Bad debts etc.)
  • All liabilities (Bank Overdraft, Secured and unsecured loans, bills payable, Outstanding Payables or expenses, Loan on mortgage etc.)
  • Sundry Creditors
  • Reserve fund, general reserve, provision for depreciation, Accumulated depreciation etc.,
  • Sales

Gains (Discount received, Return Outwards, Bad debts recovered, Profit and loss A/c (Cr) etc.)

Steps to prepare Trial balance

The following are the steps to prepare Trial Balance.

Step 1 Cast/ Balance all the ledger accounts in the books.
Step 2 List all the Debit balances on the debit side and sum them up.
Step 3 List all the Credit balances on the credit side and sum them up.
Ideally, the Trial Balance should Tally at Step 3.

Specimen of Trial balance

Trial Balance of XXX Ltd as at ______

SI No Particulars L.F Amount Rp DR Amount Rp CR
         

Example of Trial Balance

____ Ltd Trial Balance 31- Dec 2018 (in Dirham)

Accounts Debit Credit
Cash 1,02,280 -
Accounts Receivable 7,500 -
Office Expenses 2,500 -
Prepaid Rent 600 -
Prepaid Insurance 120 -
Office furniture and equipment 15,000 -
Bank loan - 15,000
Accounts Payable - 5,000
Unearned Revenues - 7,500
Capital - 1,00,000
Drawings 3,000 -
Commission Revenue - 12,500
Salary Expenses 9,000 -
Total 1,40,000 1,40,000

Read More on Trial Balance

What is Trial Balance, How to Prepare Trial Balance, Methods to Prepare Trial Balance, Errors in Trial Balance

What are the debit items in trial balance?

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-This question was submitted by a user and answered by a volunteer of our choice.

Are you facing difficulty in understanding the crux of the trial balance? I would like to help you by providing the meaning followed by items to be included on either side of the trial balance.

Meaning

The term trial balance refers to the total of all the general ledger balances. It is a statement prepared at a certain period to check the arithmetic accuracy of the accounts (i.e., whether they are mathematically correct and balanced). It contains a list of all the general ledger accounts.

Trading account, Profit and Loss account and Balance Sheet are prepared according to the ledger balances as posted in the trial balance.

Now it’s time to learn about the various items which are placed on either side of the trial balance.

Items that appear on the debit side of the trial balance

Generally, assets and expenses have a positive balance so they are placed on the debit side of the trial balance. An asset and expense increases when it is debited and vice versa

Exclusive List of Items

  1. Land and Buildings
  2. Plant and Machinery
  3. Furniture and Fixtures
  4. Office Tools and Equipment
  5. Cash at Bank
  6. Cash in Hand
  7. Motor Van
  8. Loss from the sale of fixed assets
  9. Travelling charges
  10. Printing and postage expenses
  11. Legal expenses
  12. Selling and distribution expenses
  13. Sundry debtors
  14. Bills receivables
  15. Commission paid
  16. Rent paid
  17. Interest paid
  18. Discount allowed
  19. Opening stock
  20. Purchases
  21. Prepaid expenses
  22. Advertisement expenses
  23. Bad Debts
  24. Wages and salaries
  25. Bank charges

Items that appear on the credit side of the trial balance

Generally capital, revenue and liabilities have credit balance so they are placed on the credit side of the trial balance. The capital, revenue and liability increase when it is credited and vice versa.

Exclusive List of Items

  1. Sundry Creditors
  2. Bank Overdraft/Loan
  3. Bills Payables
  4. Sales (Revenue)
  5. Purchase Returns
  6. Common stock
  7. Un-earned revenues
  8. Retained earnings
  9. Rent Received
  10. Interest Received
  11. Discount from Creditors
  12. Discount on Purchases
  13. Dividend Received
  14. Interest on Drawings
  15. Bad Debts recovered
  16. Provision on Bad Debts (Cr.)
  17. Apprentice premium
  18. Miscellaneous/Sundry income
  19. Commission received
  20. Bank interest received
  21. Compensation received
  22. Outstanding income
  23. Income from investments
  24. Bonds payable
  25. Other incomes


What are debit items?

debit item means an item a sending bank sends to a Reserve Bank for credit to the sending bank's settlement account and for debit to a receiving bank's settlement account.

Which items have debit balance?

Accounts that normally have a debit balance include assets, expenses, and losses. Examples of these accounts are the cash, accounts receivable, prepaid expenses, fixed assets (asset) account, wages (expense) and loss on sale of assets (loss) account.

What are the items in trial balance?

A trial balance typically includes five elements:.
Credits and debits to each account from transactions during the accounting period..
The associated account names..
The associated account numbers..
The dates of the accounting period..
The total sum of all debit balances and credit balances..