What Is a Trial Balance? Complete Guide

The three types of trial balance
Which column each balance goes in

A trial balance is a "list of all accounts in the general ledger that have nonzero balances," in the words of the OpenStax textbook Principles of Accounting, Volume 1: Financial Accounting, 3.6 Prepare a Trial Balance (opened October 30, 2026). The formula is total debits = total credits: "The final total in the debit column must be the same dollar amount that is determined in the final credit column." OpenStax adds that a trial balance "helps identify any computational errors throughout the first three steps in the cycle." Every definition on this page is quoted from OpenStax.

This page covers the trial balance itself: the three types, which column each balance goes in, how to prepare one and what to do when it doesn't balance. For the records it's built from, see what is a journal entry, what is double-entry bookkeeping and what is a general ledger. For how it fits into a month of bookkeeping, see what is bookkeeping.

The three types of trial balance

A business prepares a trial balance at three points in the accounting cycle:

Unadjusted trial balance: "Preparing an unadjusted trial balance is the fourth step in the accounting cycle." OpenStax defines it as a "trial balance that includes accounts before they have been adjusted."
Adjusted trial balance: "Preparing an adjusted trial balance is the sixth step in the accounting cycle." It's a "list of all accounts in the general ledger, including adjusting entries, which have nonzero balances" (OpenStax 4.4). OpenStax says that "After the adjusted trial balance is complete, we next prepare the company's financial statements."
Post-closing trial balance: "The ninth, and typically final, step of the process is to prepare a post-closing trial balance" (OpenStax 5.2). It "is also used to double-check that the only accounts with balances after the closing entries are permanent accounts. If there are any temporary accounts on this trial balance, you would know that there was an error in the closing process."

Which column each balance goes in

Each account goes in the column of its final balance. OpenStax 3.6 says: "If the final balance in the ledger account (T-account) is a debit balance, you will record the total in the left column of the trial balance. If the final balance in the ledger account (T-account) is a credit balance, you will record the total in the right column."

Each type of account has a normal balance, which OpenStax defines as the "expected balance each account type maintains, which is the side that increases." In OpenStax 3.1:

Debit balance: "As assets and expenses increase on the debit side, their normal balance is a debit. Dividends paid to shareholders also have a normal balance that is a debit entry."
Credit balance: liabilities, equity and revenues "increase with a credit," so their normal balance is a credit.

A balance on the other side is an "abnormal balance": an "account balance that is contrary to the expected normal balance of that account."

How to prepare a trial balance

Post every entry. Record each transaction as a journal entry and post it to the general ledger.
Find each account's final balance, debit or credit.
Write the header. OpenStax 3.6 says: "The header must contain the name of the company, the label of a Trial Balance (Unadjusted), and the date."
List the accounts in order. "Accounts are listed in the accounting equation order with assets listed first followed by liabilities and finally equity." Debit balances go in the left column and credit balances in the right.
Total both columns and compare them. "If the two balances are not equal, there is a mistake in at least one of the columns."

Sample: a balanced trial balance

The company and figures here are a sample, invented for this example.

Fernleaf Studio, Inc., Trial Balance (Unadjusted), March 31, 2026

Cash: debit $9,400.00
Accounts Receivable: debit $2,600.00
Equipment: debit $6,000.00
Accounts Payable: credit $1,500.00
Unearned Revenue: credit $800.00
Common Stock: credit $10,000.00
Dividends: debit $500.00
Service Revenue: credit $7,700.00
Rent Expense: debit $1,200.00
Software Expense: debit $300.00

Total debits: $9,400.00 + $2,600.00 + $6,000.00 + $500.00 + $1,200.00 + $300.00 = $20,000.00

Total credits: $1,500.00 + $800.00 + $10,000.00 + $7,700.00 = $20,000.00

The two totals are equal, so the trial balance is in balance. Each account sits in the column of its normal balance: the assets, Dividends and the two expenses are debits, and the liabilities, Common Stock and Service Revenue are credits.

If the totals don't match

OpenStax 3.6 describes two checks:

Divide by two: "One way to find the error is to take the difference between the two totals and divide the difference by two." In its example, the result matches a Dividends figure entered in the credit column, and OpenStax notes that "Dividends normally have a debit balance, but here it is a credit."
Divide by nine: "Another way to find an error is to take the difference between the two totals and divide by nine. If the outcome of the difference is a whole number, then you may have transposed a figure."

If neither works, OpenStax says: "Unfortunately, you will have to go back through one step at a time until you find the error."

What a balanced trial balance doesn't prove

Equal totals don't mean every entry is right. OpenStax 3.6 asks: "If a trial balance is in balance, does this mean that all of the numbers are correct? Not necessarily. We can have errors and still be mathematically in balance." It recommends that you "go through each step very carefully and recheck your work often to avoid mistakes early on in the process."

Where Billed fits

Billed's financial reporting page lists these reports: "Top Selling Products", "Invoice Reports", "Expense Report", "Income Vs Expense Report" and "Time Tracking Report". It says: "See how profitable your business is with Income vs Expense report." None of these is a trial balance, and Billed's financial reporting, features, mobile app, invoice software, expense tracking and integrations pages, opened October 30, 2026, don't list a trial balance.

Frequently Asked Questions

What is a trial balance?

The OpenStax textbook Principles of Accounting, Volume 1: Financial Accounting defines it as a "list of all accounts in the general ledger that have nonzero balances." The total of the debit column must equal the total of the credit column.

What are the three types of trial balance?

The unadjusted trial balance, prepared before adjusting entries; the adjusted trial balance, which includes them; and the post-closing trial balance, prepared after the closing entries. OpenStax describes them as the fourth, sixth and ninth steps of the accounting cycle.

What does it mean if a trial balance doesn't balance?

OpenStax says: "If the two balances are not equal, there is a mistake in at least one of the columns." Two checks are to divide the difference between the totals by two, or by nine; if the result of dividing by nine is a whole number, OpenStax says you "may have transposed a figure."

Does a balanced trial balance mean the books are correct?

Not necessarily. OpenStax says: "We can have errors and still be mathematically in balance."

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What Is a Trial Balance? Everything You Need to Know