Trial Balance
The Trial Balance is an accounting report that lists all accounts with their debit and credit balances, ensuring your books are balanced.
What is a Trial Balance?
A trial balance shows:
- All accounts in your chart of accounts
- Debit balances
- Credit balances
- Total debits = Total credits (if balanced)
Purpose:
- Verify accounting accuracy
- Prepare financial statements
- Identify errors
- Audit preparation
[SCREENSHOT: Sample trial balance]
Generating Trial Balance
- Go to
https://accounting.digit-tally.io - Click Reports > Trial Balance
- Select date (e.g., "As at Jan 31, 2026")
- Click Generate
[SCREENSHOT: Generate trial balance]
Trial Balance Format
| Account Code | Account Name | Debit (NGN ) | Credit (NGN ) |
|---|---|---|---|
| 1000 | Cash | 500,000 | |
| 1100 | Bank - Access | 2,000,000 | |
| 1200 | Accounts Receivable | 1,500,000 | |
| 2000 | Accounts Payable | 800,000 | |
| 3000 | Capital | 2,000,000 | |
| 4000 | Sales Revenue | 5,000,000 | |
| 5000 | COGS | 2,500,000 | |
| 6000 | Salaries | 1,000,000 | |
| 6100 | Rent | 300,000 | |
| Total | 7,800,000 | 7,800,000 |
[SCREENSHOT: Complete trial balance report]
Understanding Results
If Balanced (Debits = Credits): ✅ Accounts are mathematically correct ✅ Can proceed to financial statements ✅ Ready for review
If Not Balanced: ❌ There's an error in entries ❌ Need to find and correct ❌ Cannot prepare accurate financial statements
Common Uses
- Month-End Closing - Verify all entries correct
- Financial Statement Prep - Base for P&L and Balance Sheet
- Audit Preparation - Provide to auditors
- Error Detection - Find posting mistakes
- Account Review - See all account balances at once
Exporting Trial Balance
Export formats:
- PDF for printing
- Excel for analysis
- Share with accountant
[SCREENSHOT: Export trial balance]
What's Next?
- Profit & Loss - Generate P&L from trial balance
- Bank Reconciliation - Reconcile accounts