Adjusted Trial Balance

Step 17, preparation of the adjusted trial balance and adjusted trial balance is a list of all the balances of general measure accounts.  However, it includes impact of adjusting countries which were already recorded for our Zeta company based on the additional data which was provided and which was not accounted for during the accounting period.

 

What is the layout of the adjusted trial balance the layout of adjusted trial balance is the following.  It has 7 columns.  The first column is name of the accounts the same is in the trial balance.  The next one two columns for debit and credit separate for debit and separate for credit and we start from non-adjusted balances so these columns will include non-adjusted balances.

 

Then we will have two columns for debit and credit to reflect adjusting entries separately and last two columns will be summarizing final balances after the impact of the adjusting entries is recorded and further you can see an example.  This is not for company Zeta but this is just a way out of the adjusted trial balance and here we have names of the accounts.

 

We have the first two columns it is debit and credit column for non-adjusted balance then we record and indicate separately in debit and credit columns adjusting entries and afterwards we indicate final balances of all the accounts again in separate two columns so this is the layout for trial balance and on the next slide you can see the last columns for their adjusted trial balance of company Zeta and also the trial balance with no adjusting entry and separate columns for the adjusting entries.

 

So you can see that data which was reflected in the form of adjusting entries is indicated in the middle of the adjusted trial balance and it is reflected separately and again total values of debit and credit columns both for non-adjusted balances built for adjusting entries and both for adjusted trial balance.  They must be equal so debit must be equal to credit.  If there is no equality this means that something was wrongly recorded or posted to the general ledger accounts and we will be searching for mistakes which might be done while preparing those entries.

 

So this is the adjusted trial balance and this trial balance will be used to prepare financial statements for the company Zeta.

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