THE TRIAL BALANCE 65 



Procedure in Taking a Trial Balance. Having decided 

 when the trial balance is to be taken, there are three steps 

 to be followed in taking it. 



1. The balance of each account in the ledger is calcu- 

 lated and recorded very lightly in pencil in the explana- 

 tion column for reference on the side of the account that 

 is larger. 



2. The balance of each account is listed in its proper 

 column in the trial balance. 



3. The two columns of the trial balance are added and 

 it is seen that the two totals are equal. 



Finding the Balance of an Account. In order to find 

 the balance of an account, the debit side is added and the 

 total is expressed lightly with a sharp pencil immediately 

 under the last debit entry, as shown in Illustration 12. 

 Then the credit side is added, and the total recorded in a 

 similar manner on the credit side. The difference is found 

 between the debit and credit totals thus recorded in pencil. 

 If the debit total exceeds the credit total, the amount of 

 excess, commonly called the debit balance, is written in 

 pencil in the explanation, column of the debit side of the 

 account. (See Illustration 12, Cash Account.} If the credit 

 total exceeds the debit, the balance is written in pencil in 

 the explanation column of the credit side of the account. 

 If there are entries on only one side of the account it is 

 not necessary to show the balance in the explanation col- 

 umn. In such a case the pencil total is also the balance of 

 the account, and it is used in the trial balance as such. 



This process is performed in connection with every 

 account in the ledger. If the debit and credit pencil totals 

 are equal in an account, no amount is written in either 

 explanation column. The account is in balance, and is 

 ready to be ruled off with a single line, total amount and 

 double lines on both sides of the account. 



