How to Make Trial Balance in Excel (with Easy Steps)

In this article, we discuss how to make a Trial Balance in Excel using a dataset as a Ledger, and provide a free downloadable Trial Balance template.

Step 1 – Making a Ledger

Before we can make a Trial Balance, we’ll need a Ledger. Trial Balance values are derived from Ledger entries.

In simple terms, an Accounting Ledger is an account or record used to store bookkeeping entries for balance sheets and income statements. Accounting Ledger journal entries usually include accounts like cash, accounts receivable, investments, inventory, accounts payable, accrued expenses, customer deposits, etc.

Here, we’ve created the dataset below of an arbitrary Ledger named Making Ledger, which contains all the financial statements of a company, and covers almost all of the categories of a Ledger.

how to make trial balance in excel

Step 2 – Preparing Trial Balance

Now let’s use the Ledger we’ve just created to prepare a Trial Balance.

A Trial Balance displays the information on each Ledger balance in a tabular style. It includes all the transactions made during the year as well as the opening and closing balances. A Trial Balance aids in analyzing the position and transactions made during the period. Importantly, a Trial Balance lists all the accounts representing both Debit and Credit balances in one location. If the Total Debit and Total Credit Balances are equal, the Trial Balance is correct.

Generally, the Trial Balance has three columns: the Ledger column and Debit and Credit Balance columns. We have designed our Trial Balance with a column header Preparing Trial Balance. Some of the particulars in the Ledger have been added as Debit Balances, with the rest added as Credit Balances.

Having added all the Ledger entries, our Trial Balance looks like this:

preparing trial balance