Financial accounting — trial balance and adjustments

What you'll learn

1. 1

   A trial balance is a list of all your accounts showing their balances — like a snapshot of your business's health. 📊

2. 2

   What does a trial balance show?

3. 3

   Build a trial balance by dragging each account into the correct column: debit or credit.

4. 4

   Let's do one together: rent paid £500, sales £1000, cash £1500.

5. 5

   Which side does an expense go on in a trial balance?

6. 6

   Now add an adjustment: you prepaid £200 of rent. Update the trial balance.

7. 7

   After the prepayment adjustment, which accounts change?