Lesson Note: Trial Balance for
JSS3 Students
Subject: Basic Accounting
Topic: Trial Balance
Class: JSS3
Duration: 1 hour
Date: [Insert Date]
Teacher’s Name: [Insert Name]
Learning Objectives:
By the end of this lesson, students should
be able to:
1. Understand the concept of a trial
balance.
2. Identify the purpose and
importance of preparing a trial balance.
3. Know how to prepare a trial
balance from ledger balances.
4. Detect and correct errors in a trial
balance.
Introduction:
• Recall: In the previous lesson, we
discussed ledger accounts, which are
used to record all financial transactions
of a business.
• Today, we will learn about the trial
balance, a statement that helps us
ensure that the total of all debits equals
the total of all credits in the ledger.
Main Content:
1. What is a Trial Balance?
• A trial balance is a statement that
lists all the ledger balances (both debit
and credit) at a particular point in time.
• Its main purpose is to check the
arithmetic accuracy of the ledger
entries.
• The trial balance helps to verify
whether the total debits equal the total
credits.
2. Purpose of the Trial Balance:
• To detect errors: If the trial balance
does not balance, it indicates that there
is a mistake in the ledger.
• To ensure accuracy: It confirms that
the accounting equation (Assets =
Liabilities + Owner’s Equity) is balanced.
• To prepare financial statements: A
trial balance is a foundation for
preparing the Income Statement and
Balance Sheet.
3. How to Prepare a Trial Balance:
• Step 1: List all the accounts from the
ledger.
• Step 2: Write the balances of each
account.
• Debit balances (e.g., Assets,
Expenses) are listed in the debit
column.
• Credit balances (e.g., Liabilities,
Revenue) are listed in the credit
column.
• Step 3: Total both the debit and
credit columns.
• Step 4: Ensure that the total debits
equal the total credits. If they do not
balance, check for errors.
Sample Trial Balance Format:
Account Name Debit (₦) Credit (₦)
Cash 10,000
Accounts Receivable 5,000
Accounts Payable 3,000
Sales Revenue 7,000
Rent Expense 2,000
Total 17,000 10,000
4. Common Errors in Trial Balance:
• Omission Error: When a transaction
is not recorded in any ledger account.
• Transposition Error: When figures
are written incorrectly, for example,
writing 1500 instead of 1050.
• Wrong Ledger Posting: Posting a
debit entry in the credit side and vice
versa.
• Double Entry Error: If one side of a
transaction is recorded more than once.
If the trial balance doesn’t balance, these
are the types of errors to check for.
Activity:
• Group Work: Provide students with a
list of ledger balances and ask them to
prepare a trial balance.
• Example ledger balances:
• Cash: ₦5,000 (Debit)
• Capital: ₦7,000 (Credit)
• Sales: ₦3,000 (Credit)
• Rent Expense: ₦1,500 (Debit)
• Accounts Payable: ₦2,000 (Credit)
• Accounts Receivable: ₦4,000
(Debit)
Group Task: Prepare the trial balance
and check if the totals balance.
Conclusion:
• Recap the key points: A trial balance
ensures that the debit and credit
balances are equal, which helps in
identifying errors before preparing
financial statements.
• Emphasize that the trial balance is a
tool used to verify the accuracy of
accounting records.
• Remind students to always check for
common errors when the trial balance
doesn’t balance.
Evaluation:
1. What is a trial balance?
2. Why is it important to prepare a
trial balance?
3. What should you do if a trial
balance does not balance?
4. Prepare a trial balance using the
following ledger balances:
• Cash: ₦8,000 (Debit)
• Sales Revenue: ₦5,000 (Credit)
• Rent Expense: ₦2,000 (Debit)
• Accounts Payable: ₦3,000 (Credit)
Assignment:
• Prepare a trial balance from the ledger
balances given in the assignment sheet
for the next class. Be prepared to
identify any errors if the trial balance
does not balance.
End of Lesson Note
