Trial balance (saldibalans)
A trial balance shows all ledger accounts with their debit and credit balances at a given moment. It is a working document for preparing the balance sheet and profit and loss account.
What does trial balance (saldibalans) mean?
A trial balance shows all ledger accounts with their debit and credit balances at a given moment. It is a working document for preparing the balance sheet and profit and loss account.
The debit and credit sides should be equal after correct entries. The list contains accounts, not the final presentation line items. Therefore first check clearing accounts and then the mapping to the balance sheet and profit and loss account.
How does it work?
The trial balance lists one amount per ledger account: the balance, debit or credit. Balance sheet accounts and profit and loss accounts are still mixed. The debit total equals the credit total; the difference among the profit and loss accounts alone is the profit or loss.
No statutory article prescribes the trial balance. It follows from the bookkeeping obligation of art. 2:10(1) DCC and is the starting point for the balance sheet and the statement of income and expenses that the board must prepare every year under paragraph 2. From trial balance to annual accounts there are three steps: the year-end entries, the classification of each account into a line item of Title 9 and the test on valuation.
Example
A BV has these balances on 31 December. Debit: equipment € 20,000, accounts receivable € 15,000, bank € 8,000 and costs € 95,000; together € 138,000. Credit: share capital € 1,000, reserves € 14,000, loan € 8,000, accounts payable € 5,000 and turnover € 110,000; together € 138,000. The profit and loss accounts give 110,000 − 95,000 = € 15,000 profit. The balance sheet adds up to € 43,000 assets against € 28,000 of capital, reserves and liabilities; the difference of € 15,000 is the same profit. Which part of the loan is repaid within a year is not on the trial balance.
In the annual accounts
Source bookkeeping; not an independent part of the published annual accounts.
Difference from the balance sheet
The balance sheet is part of the annual accounts and shows only assets, equity and liabilities at the balance sheet date, grouped in statutory line items. The trial balance is a working document that also contains turnover and costs, at account level. Ten bank accounts on the trial balance become one line of cash and cash equivalents; a bank account with a credit balance moves to the liabilities.
Common mistakes
- Mistaking a balancing trial balance for audited annual accounts
- Publishing gross amounts directly without mapping
What to watch for
- Check that clearing accounts and suspense items are at zero before you classify.
- Compare the opening balances with the adopted annual accounts of the prior year; a difference means entries were still made in the old year after closing.
- A micro entity is fine with the main items of art. 2:395a(4) and (5) DCC; medium-sized and large entities link each account to a line item of art. 2:364 up to and including 2:377. The export itself is in exporting and checking a trial balance.
Legal basis and sources
art. 2:10(1) DCC
Frequently asked questions
Is a trial balance enough to prepare annual accounts?
For the figures yes, provided the year-end entries are included. The notes need more: maturities of debts, security, the number of employees and the chosen accounting policies are not on a trial balance.
What is the difference from a worksheet trial balance (kolommenbalans)?
The kolommenbalans is the broader worksheet: unadjusted trial balance, adjusted trial balance and also the columns for the profit and loss account and the balance sheet. The trial balance is one part of it.
Read more
Preparing Dutch annual accounts?
Your first set of annual accounts is free, for every size class. Create an account and prepare the annual accounts of your Dutch company under Title 9 of Book 2 of the Dutch Civil Code.
Get started