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What is a trial balance? What is the purpose of a trial balance? What is a suspense account and when is it opened? If a trial balance balances, does it mean the accounts are correct? When is a trial balance prepared? What is a balance brought down and carried down? How do you balance a ledger account? Where do drawings appear in the trial balance and financial statements? What is the total of the trial balance meant to demonstrate? What comes after the trial balance in the accounting cycle?
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Which balances go on the debit side and which on the credit side of the trial balance?

Beginner

Answer

Debit balances: assets, expenses, and drawings. Credit balances: liabilities, capital, and income. So debtors, purchases, cash, and drawings are debits; creditors, sales, capital, and loans are credits. Placing each balance on its correct side is essential for the trial balance to balance.
Debits: assets, expenses, drawings
Credits: liabilities, capital, income
Real-world example Purchases and debtors sit in the debit column; sales and creditors sit in the credit column.

Common follow-ups: On which side is capital? | Where do drawings go?

Control Accounts Correcting Errors Trial Balance
All 25 Trial Balance questions