1. Identify the general ledger accounts that have balances. This can be done by reviewing the general ledger accounts and selecting those that have a non-zero balance.
2. Enter the account numbers and names into the trial balance. The account numbers should be listed in the first column of the trial balance, and the account names should be listed in the second column.
3. Enter the debit and credit balances for each account. The debit balances should be listed in the third column of the trial balance, and the credit balances should be listed in the fourth column.
4. Total the debit and credit columns. The total debit and credit balances should be equal, and this equality indicates that the trial balance is accurate.
Here is a simplified example of how entries are posted from the general ledger to the trial balance:
| Account Number | Account Name | Debit | Credit |
|---|---|---|---|
| 101 | Cash | $5,000 | $0 |
| 102 | Accounts Receivable | $10,000 | $0 |
| 103 | Equipment | $20,000 | $0 |
| 201 | Accounts Payable | $0 | $5,000 |
| 202 | Unearned Revenue | $0 | $10,000 |
| 301 | Owner's Equity | $35,000 | $0 |
| Totals | $70,000 | $70,000 |
In this example, the debit and credit columns total $70,000, which indicates that the trial balance is accurate.