How to Adjust a Trial Balance

You can adjust the ending balance of each record in a trial balance file listed in Review Trial Balances. You make adjustments in the Detail View of each trial balance. An adjustment always consists of an initial adjustment entry to an ending balance and a counterbalancing or offsetting adjustment to a different ending balance so that the sum of adjustments in the trial balance file always equals zero. The final balance numbers, which include any adjustment, are used in the creation of master trial balances.

Adjusting a Trial Balance

Each trial balance can be adjusted as follows:

  1. In Review Trial Balances, click the name of the trial balance file in which you want to make an adjustment.
  2. In the resulting Detail View of the trial balance, enter a negative or positive whole number in the Adjustment field next to the ending balance that you want to adjust. The adjusted ending balance will then be calculated based on your entry, and it will display in the Adjusted Ending Balance column.
  3. Optionally, enter a note that explains the reason for the adjustment by clicking the corresponding View/Edit link in the related Adjustment Notes column.
  4. To balance the adjustment that you made, enter an offsetting adjustment to the ending balance of another record in the trial balance. The offsetting adjustment does not have to be made to a corresponding account as in dual entry bookkeeping; it just has to balance your initial adjustment entry. You can even spread your offsetting adjustment over more than one record.
  5. When you have finished adjusting the trial balance and the Adjustments Sum field at the bottom of the Adjustments column equals zero, click Save to save all of your adjustments.

Example of an Adjustment

Shown below is an example of an adjustment to a trial balance.

  1. The Detail View of trial balance file XYZ has a record for General Ledger Account Code 500 that shows an ending balance of $1,000.
  2. You know that this ending balance for GL Account Code 500 is not correct; it should be $1,100.
  3. Therefore, you enter 100 in the adjustment field for GL Account Code 500.
  4. General Ledger Manager then calculates an adjusted ending balance of $1,100 for GL Account Code 500.
  5. The Adjustments Sum field at the bottom of the Adjustments column, however, displays $100.00 in red, indicating that it is not balanced.
  6. Therefore, you must make an offsetting adjustment.
  7. Trial balance file XYZ also has a record for General Ledger Account Code 501 that shows an ending balance of $100.
  8. You enter -100 in the adjustment field for GL Account Code 501 to create your offsetting adjustment.
  9. The Adjustments Sum field at the bottom of the Adjustments column now displays 0, indicating that all of the adjustments are now in balance.
  10. You can now click Save to save your changes.