The Structure of the Trial Balance

Abstract

The given paper considers the characteristic features of the early Trial Balances formation in Francesco di Marco Datini’s companies in Pisa. Special attention is paid to the activities of the First (1392–1394) and Second (1394–1395) companies. The procedure for the formation of the Trial Balance in these companies and its structure are described in detail. It has been noted that, primarily, indicators from Entrata e Uscita and Memoriale were transferred to “Debtors” side of the Trial Balance. Then, balances of personal accounts of debtors were transferred from the Ledger. And the balances of Merchandise accounts were transferred last of all. Consequently, the indicators on the Debit side of the Trial Balance were placed in order of liquidity decreasing—money, accounts receivable, goods for sale. On the Credit side of the Trial balance, the first indicator was presented in the reserve being created out of pre-distribution profit. Then, the balances of personal accounts of creditors were transferred. The last entry (either in the debit or in the credit) presented the difference between “Debit” and “Credit”. The research method is archival, using logical-analytical modelling of sets of accounting books, related to the research periods. This method is used in the use of modern digital technologies, which are the most important tool in research in the field of accounting history.