A trial balance can be referred to as a list of accounts that have a period-ending balance. Once the general ledgers are complete, the ending balance of each account is posted to the trial balance. It contains two amount columns one for all the debit balances and the other for all credit balances. The total of debit balances will always be equal to the total of credit balances.
Preparing of trial balance is one of the steps of the accounting cycle which comes just after the ledger completion. It also helps in identifying the arithmetic accuracy of accounting entries.
An unadjusted trial balance is the one that is prepared just before making the adjusting entries at the end of the period. This trial balance does not include any adjustment regarding deferral or accrual of expenses or incomes.
An example of an unadjusted trial balance is given below:
| Account titles | Debit | Credit |
| Cash | $ 74,500 | |
| Accounts Receivable | 75,900 | |
| Prepaid expenses | 8,500 | |
| Inventory | 52,000 | |
| Short term investment | 126,100 | |
| Equipment | 150,000 | |
| Accumulated depreciation – Equipment | $ 60,000 | |
| Building | 350,000 | |
| Accumulated depreciation – Building | 70,000 | |
| Accounts payable | 60,500 | |
| Bonds payable | 160,000 | |
| Common stock | 50,000 | |
| Additional paid in capital – Common stock | 225,000 | |
| Retained earnings | 72,000 | |
| Dividend | 15,000 | |
| Treasury Stocks | 5,000 | |
| Revenue | 1,400,000 | |
| Cost of goods sold | 1,150,000 | |
| Salary expenses | 24,500 | |
| Rent expenses | 44,000 | |
| Utilities expenses | 22,000 | |
| Total | $ 2,097,500 | $ 2,097,500 |
