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· intermediate

Trial Balance in Excel

Bookkeeping is two columns that have to agree, and Excel is where most small sets of books actually live. Build a trial balance from a ledger, prove it balances, find the error when it does not, and split the balances into the two statements a business is judged on.

Pathaxis · Original content

Written in house, from the work rather than from a syllabus. Every example is one we would use ourselves, and every exercise is checked against the same engine that grades your answer.

88 min 6 lessons 16 quiz questions 7 exercisesStart course

What you’ll learn

  • Read a ledger as debits and credits, and say which side any account belongs on
  • Build a trial balance from a transaction ledger with SUMIF
  • Prove the trial balance agrees, and measure the difference when it does not
  • Use the divide by 9 and divide by 2 checks to narrow down a difference
  • Name the errors a trial balance catches and the four it never will
  • Post adjustments and produce an adjusted trial balance
  • Split the balances into a profit and loss and a balance sheet that tie back to each other

Before you start

  • · Excel Foundations, in particular SUMIF and absolute references
  • · No accounting background. The double entry is taught here from the beginning

Syllabus

01

Debits, credits and the ledger

Which side an account sits on, and why the two columns must agree.

02

Building it and proving it

SUMIF from the ledger, the totals, and the hunt when it does not balance.

03

From trial balance to statements

Adjustments, then splitting the balances into the two statements.