Film Accounting Glossary
Trial balance
What is a trial balance?
Also called TB.
A trial balance is the listing of every account with its debit or credit balance, proving that the ledger's totals agree.
It is the checkpoint between bookkeeping and reporting: a trial balance that does not balance means the cost report cannot be trusted yet. Reviewing it also surfaces accounts with implausible balances, such as a negative rental line or a suspense account that should be empty.
Example
The trial balance shows a negative $3,200 in a rental account and $7,400 sitting in suspense. Neither is possible in a clean set of books, so both get resolved before the cost report is issued rather than after it is questioned.
Figures are illustrative, chosen to show the mechanics rather than to quote market rates.
Where you'll see it
The checkpoint between bookkeeping and reporting, reviewed before each cost report goes out.
Common mistake
Checking only that it balances. A balanced trial balance with a negative rental account or a populated suspense account is still telling you something is wrong.
Related questions
- Does a balanced trial balance mean the books are correct?
- No. It means nothing was lost. Costs can still sit in the wrong accounts, which balances perfectly and misstates every department's variance.
- What should you look for on a trial balance?
- Implausible balances: negative amounts where there should be none, suspense accounts that should be empty, and accounts with no activity that should have some.