All of the credit balances are listed in one column of the trial balance, while all of the debit balances are listed in the other.

Following the general ledger and journalized recording of all transactions for the period, the trial balance is generated.

It is essential to record all account balances under the appropriate column when creating a trial balance.

The columns are:

Assets = Debit balance

Expenses = Debit Balance

Liabilities = Credit balance

Equity = Credit balance

Revenue = Credit balance