What is the list of debit and credit items in Trial Balance?(Rules,Examples)

 Are you excited to know the list of debit items and credit items in Trial Balance with an example? Let's dive into it. See how it works with rules in simple terms. 

What is Trial Balance in accounting?

Trial Balance is a statement that is prepared to ensure the arithmetical accuracy of books of accounts. It is a statement, not an account. It is prepared on a particular date to ensure the arithmetical accuracy of books of accounts i.e., to check that all accounts adhere to the Generally Acceptable Accounting Principles and there are no clerical errors exist in books of accounts.

It has all the ledger accounts having debit and credit balances. It has a debit balance and credit balance columns which are equal in amount and tallies. If both the credit and debit columns are equal in amount and tallies then it represents that there are no errors and ensures arithmetical accuracy of books of accounts. The difference amount in the Trial Balance, when debit & credit balance does not tally, will be transferred to the suspense account. When these errors are rectified, then the suspense account is closed by passing an adjustment entry. 

What is the list of debit and credit items in the trial balance with rules?

Trial balance gives the list of ledger account balances. These ledger accounts may have a debit balance or credit balance based on the nature of the account. 

These ledger accounts are classified as Assets, Liabilities, Equity/Capital, Expenses & Incomes

Here, the simple rule explains that all the Assets, Expenses have a Debit Balance. All Incomes, Liabilities, and Capital/Equity have a Credit balance

The list of Debit items in the Trial balance

Here, we have the list of items/accounts that have a debit balance in the trial balance. Generally, Assets and Expenses/Losses have a debit balance

1. Land and Building

2. Plant & Machinery

3. Furniture & fixtures

4. Office Tools & Equipments

5. Vehicles or Motor Vans

6. Goodwill

5. Patents 

6. Trademarks 

7. Copywrites

8. Investments

9. Cash in hand

10. Sundry Debtors

11. Accounts Receivable, Bills receivables

12. Prepaid expenses

13. Purchases

14. Direct expenses (wages, factory expenses)

15. Opening Stock

16. Selling & Advertisement Expenses

17. Bad Debts

18. Depreciation

19. Commission paid

20. Discount Allowed

21. Rent paid

22. Salary paid

23. Bank charges

24. Printing & stationery charges

25. Bank charges

26. Interest paid

27. Legal expenses

28. Loss on sale of machinery/equipments

29. Travelling/conveyance charges

30. Cash at bank

The list of Credit items in the Trial balance

Here, we have the list of items/accounts that have a credit balance in the trial balance. Generally, Capital, Reserves, Liabilities and Incomes have credit balance in trial balance

1. Capital/ Equity 

2. Reserves

3. Long-term liabilities

4. Short-term liabilities

5. Loans

6. Borrowings

7. Sundry Creditors

8. Bills payables/Accounts payable

9. Bank overdraft

10. Sales

11. Discount Received

12. Gain on sale of machinery/equipment

Conclusion

Here we have listed the debit items and credit items in the trial balance with a simple rule. This would be helpful to understand the simple concept on the list of debit items & credit items in trial balance. Also, feel free to share the content and comment below on your views or feedback.