All 25 Trial Balance questions
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Why do assets and expenses have debit balances while income, liabilities, and capital have credit balances? How do accruals and prepayments affect the figures taken to the financial statements from the trial balance? What is the effect of depreciation on the trial balance and statements? What is the difference between a trial balance error being 'in the trial balance' versus 'in the ledger'? How does closing inventory appear in relation to the trial balance? How do compensating errors affect the trial balance? How is a suspense account shown if the trial balance still doesn't balance at reporting time? How do you incorporate a correction of a prior error into the trial balance / statement of corrected profit?
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What is an extended trial balance (ETB)?

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Answer

An extended trial balance adds columns to the basic trial balance for adjustments (accruals, prepayments, depreciation, closing stock), and then splits the adjusted figures into income statement and balance sheet columns. It provides a worksheet to move from the ledger balances to the financial statements in a controlled, checkable way.
ETB columns: TB Dr/Cr | Adjustments Dr/Cr |
  Income Statement Dr/Cr | Balance Sheet Dr/Cr
Real-world example The accountant uses an extended trial balance to incorporate depreciation and accruals before drafting the accounts.

Common follow-ups: What columns does an ETB add? | How does it aid accuracy?

Correcting Errors Control Accounts Trial Balance
All 25 Trial Balance questions