Trial balance
What the trial balance of totals and balances is, how it is built, which errors it detects and which it does not, and how to produce it in GoSoft by level, unit and period.
The trial balance lists every account with its totals (total debits and credits) and its balances (debit or credit). It is the bridge between the books and the financial statements, and the first proof that the books are in order.
- Build and interpret a trial balance.
- Know which errors it detects and which it does not.
- Produce it in GoSoft with the level of detail you need.
Structure
| Account | Opening balance | Debit | Credit | Debit balance | Credit balance |
|---|---|---|---|---|---|
| Bank | 40,000,000 | 30,000,000 | 25,000,000 | 45,000,000 | |
| Receivables | 60,000,000 | 10,000,000 | 18,000,000 | 52,000,000 | |
| Payables | −15,000,000 | 12,000,000 | 9,000,000 | 12,000,000 | |
| Capital | −85,000,000 | 85,000,000 | |||
| Sales | 30,000,000 | 30,000,000 | |||
| Expenses | 30,000,000 | 30,000,000 | |||
| Totals | 0 | 82,000,000 | 82,000,000 | 127,000,000 | 127,000,000 |
Two tests must hold: equal totals (debits = credits) and equal balances (debit = credit).
What it detects and what it does not
| Detects | Does not detect |
|---|---|
| Unbalanced entries | An entry posted to the wrong account but balanced |
| Addition errors | An operation left out entirely |
| A duplicated entry | |
| Wrong amounts equal on both sides |
That is why the trial balance is necessary but not sufficient: it is complemented by account reviews, reconciliations and accounting health.
In GoSoft, step by step
Open Financial reports → Trial balance.
Choose units, start and end dates, and the level of detail (from class to posting account). Tick Accounts without movements to see them all and Including the closing entry if the period includes the annual closing.
Click View. GoSoft shows at the top whether it balances (debits = credits and debit balance = credit balance).
gosoft.app
Trial balance of totals and balances that balances Export to Excel for your working papers.
Scan the trial balance for balances on the wrong side: an asset with a credit balance or a liability with a debit balance. They almost always hide a recording error.
Which two equalities must the trial balance satisfy?
Equal totals (debits = credits) and equal balances (debit = credit).
You posted an expense to the wrong account. Does the trial balance catch it?
No, because the entry is balanced. It is caught by reviewing the accounts.
What is choosing the level of detail for?
To see the trial balance summarized by groups or detailed down to posting accounts.