Trial Balance – Determination of Debit and Credit

Trial Balance – Determination of Debit and Credit – Determining the debits and credits in the trial balance is a matter of considerable importance. If you don’t have clear understanding about debit-credit in accounting, trial balance will be wrong.
See this post on Debit Credit.

In real account there will be a debit when assets come in and a credit when assets go out.
In nominal account expense and loss is debit, on the other side income and profit is credit.

A trial is prepared by transferring the debit balance of the ledger on the debit side of the trial balance and the credit balance on the credit side. There are some accounts that always show a debit balance, and some accounts that always have a credit balance. If you know which type of account has debit balance and which type of account has credit balance then you can prepare a trial balance very easily.

Specimen of a Trial
Balance with Accounts

 Company Name: … … … … …

 Date: … … … …. … …

 Trial Balance

More Resources

Thank you for reading our resources on the Trial Balance – Determination of Debit and Credit. Enhancing your knowledge more and progressing in your career, you may find the following guides helpful: