An adjusted trial balance is a financial statement that lists the balances of all the ledger accounts in a company’s general ledger at the end of an accounting period, after adjusting entries have been made. It is used to ensure that the total debits equal the total credits in the general ledger, which indicates that the accounting records are in balance.
The adjusted trial balance is prepared after the unadjusted trial balance has been prepared and any necessary adjusting entries have been made. Adjusting entries are made to reflect any outstanding transactions or errors that have been identified and to ensure that the financial statements accurately reflect the company’s financial position at the end of the accounting period.
The adjusted trial balance includes a list of all the ledger accounts, along with their debits and credits, and the balances of each account after adjusting entries have been made. It is used to verify the accuracy of the company’s accounting records and to identify any errors that may have been made in the recording process.
Here is an example of an adjusted trial balance:
| Account Name | Debit | Credit |
| Assets: Cash Accounts Receivable Supplies | $1,000 | |
| $500 | ||
| $500 | ||
| Liabilities: Accounts Payable | $400 | |
| Equity: Capital Stock Retained Earnings | $1,000 | |
| $300 | ||
| Revenue: Sales | $1,300 | |
| Expenses: Salaries Expense Rent Expense Utilities Expense | $500 | |
| $200 | ||
| $300 | ||
| Total | $3,000 | $3,000 |
In this example, the adjusted trial balance includes a list of all the ledger accounts in the company’s general ledger, along with their debits and credits. The total debits of $3,000 equal the total credits of $3,000, indicating that the accounting records are in balance. The adjusted trial balance has been prepared after adjusting entries have been made to reflect any outstanding transactions or errors that have been identified.
The adjusted trial balance is an important tool in the accounting process and is used to verify the accuracy of a company’s financial records after adjusting entries have been made. It is typically prepared before the financial statements are created and is used to identify any errors that may need to be corrected.