What you'll learn
How to check the ledgers and adjust at period end.
Key ideas
- The trial balance checks total debits equal total credits.
- Adjustments: accruals (owed), prepayments (paid ahead), bad debts and provisions for doubtful debts.
- Some errors don't affect the trial balance (e.g. omission).
Exam tips
- Learn which errors the trial balance misses.
- Apply accruals and prepayments correctly.
Common mistakes
- Confusing accruals and prepayments.
- Assuming a balanced trial balance means no errors.