THE TRIAL BALANCE 



73 



viously stated, one of the purposes of a trial balance is to 

 supply amounts to be used in preparing financial state- 

 ments. To assist in the preparation of statements, the 

 accounts in the trial balance are marked with appropriate 

 letters to indicate the position of each in the financial 

 statements. For this purpose "E" means expense, "I" 

 income, "R" resource and "L" liability. To illustrate 

 more fully the preparation of statements from the trial 

 balance, the trial balance of Illustration 13 is reproduced 

 below with the appropriate letters properly used. 



ILLUSTRATION 15 



TRIAL BALANCE MARKED FOR PREPARING STATEMENTS. 

 TRIAL BALANCE, FEB. 28, 1917, MR. ARNOLD 



From a study of the initials placed before the names of 

 the accounts it is seen that all debit balances are marked 



