CHAPTER V 



THE TRIAL BALANCE 



To determine whether the debits and credits 

 have been correctly posted in the ledger, a " T^'ial 

 Balance SJieef' is prepared. If the sum of all 

 the debits is equal to that of all the credits, 

 it is good evidence that the books have been 

 correctly posted. Peter Brown, in the blotter, 

 is debited with $3, and, through carelessness. 

 Farm Products, instead of Orchard, might be 

 credited with this $3, but such mistakes seldom 

 occur. This is called " posting to the wrong 

 account," and the Trial Balance will not reveal 

 such error. A Trial Balance results from placing 

 the sum total of all debit charges of all accounts 

 in one column, and all the credit charges of all 

 accounts in a like column. If the sum total of 

 all the debits in the first column equals the sum 

 total of all the credits in the second column, the 

 posting has been correctly done. The balances 

 and the last inventories are not entered in the 

 ledger until after the Trial Balance is taken. 



Sometimes the inventory is entered in red ink, in 

 order to attract attention. In this book, the figures 



(70) 



