Trial Balance Explained Step by Step | Double Entry, Ledger Posting, Journals & Accounting Errors

Welcome to this complete beginner-friendly accounting lecture on the Trial Balance (TB)!
In this full step-by-step tutorial, you will learn exactly how transactions move through the accounting system — from source documents, day books, and journals, into the General Ledger, and finally into the Trial Balance. If you’re new to bookkeeping, preparing for accounting exams, or you simply want to understand double-entry accounting and financial statements, this video will guide you through every stage clearly and simply.

⭐ What you will learn in this full Trial Balance lesson:

✔ What the Trial Balance is and why it is used
✔ The structure and layout of a Trial Balance
✔ How transactions flow from source documents → day books → journals → the General Ledger → TB
✔ How the duality principle (double-entry system) works
✔ How to post transactions into T-accounts
✔ How to balance ledger accounts (c/d and b/d) (carried down and brought down)
✔ How to build a Trial Balance step-by-step
✔ Why total debits must equal total credits
✔ The role of the Trial Balance in preparing financial statements
✔ Types of accounting errors
✔ Which errors affect the Trial Balance and which don’t
✔ How to correct errors using journal entries

This lecture covers the entire process from the basics all the way to constructing your own Trial Balance from scratch. It is ideal for absolute beginners, accounting students, small business owners, or anyone learning bookkeeping for the first time.


If you sometimes feel confused about how the different parts of accounting fit together, this lesson will finally connect everything in a logical, visual, and easy-to-understand way.

⭐ Topics covered in detail:

• Source documents: invoices, bills, bank statements
• General Journal entries
• T-accounts posting (debits and credits)
• Balancing accounts at period end
• Extracting ledger balances into a Trial Balance
• Trial Balance format and common layouts
• Preparing for the Income Statement and Balance Sheet
• Suspense accounts (brief mention)
• Errors that affect the Trial Balance:
Error of Omission,
Error of Commission,
Error of Principle,
Error of Original Entry,
Compensating Errors,
Complete Reversal of Entries
• Errors that do NOT affect the Trial Balance
• Correction of errors using journals and adjustments

Whether you are studying for assessments or learning bookkeeping for practical use, this lecture aims to give you the clearest possible introduction to the accounting cycle.




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