4.2 The T-accounts before their balance is worked out
In order to prepare a trial balance at any time, it is necessary to determine the balance on each account. This process is known as ‘balancing off’ the general ledger accounts. The trial balance can then be prepared by listing each closing balance from the general ledger accounts as either a debit or a credit balance.
Below are the T-accounts in Edgar Edwards’ general ledger (see Activity 4 in Week 3). The general ledger accounts should be balanced off prior to compiling the trial balance.
