the amounts would be posted to the debit or credits of the cash account in the ledger; but for convenience we keep the cash accounts in a separate book. Journalizing a few of the transactions given will clearly demonstrate the point. TRIAL BALANCE =69.= A _trial balance_ is a list of the balances of all accounts remaining open in the ledger, together with the balance shown by the cash account. On journal paper, all open accounts are listed by name; the debit balances are placed in the debit column, and credit balances are placed in the credit column; the pages of the ledger are placed in the folio column, opposite the names of the account. Both debit and credit columns are footed, and the footings of the two columns should agree. A trial balance is taken for the purpose of testing the accuracy of the postings to the ledger; to find out if the ledger is in balance. The trial balance can be taken without considering the balances, by taking the total debit and credit items posted to all open accounts. While the trial balance shows that for every debit posted to the ledger a corresponding credit has also been posted (double entry principle), it does not absolutely prove the accuracy of the work. If a debit item of $100.00 were posted to the debit of the wrong account, it would not affect the balance of the ledger; but if the item were posted to the credit instead of to the debit of the account, the ledger would be out of balance and the amount that it was _out_would be shown by the trial balance. CLASSIFICATION OF ACCOUNTS =70.= The arrangement of the accounts in the ledger is of considerable importance. Since one of the objects of bookkeeping is to exhibit the standing or condition of the business, the accounts should be classified in a manner that will make easiest the assembling of important statistics. The accounts in the ledger represent either _Assets_ (resources), _Liabilities_, _Profits_ (gains), or _Losses_. Every account having a debit balance represents either (_a_) an asset or (_b_) a loss. (_a_) A personal account having a debit balance represents an asset; (_b_) any expense account having a debit balance represents a loss, as it reduces the chance for profit. Every account having a credit balance represents either (_c_) a liability or (_d_) a profit. (_c_) A personal account having a credit balance represents a liability--that is, something we owe; (_d_) a sales account having a credit balance represents a profit because it increases our chance of gain. [Illustration: OFFICE OF THE REGISTRAR, AMERICAN SCHOOL OF CORRESPONDENCE] =71. Arrangement in Ledger.= The foregoing classifications should be kept in mind in arranging the accounts in the ledger. First provide space for the asset and liability accounts; then follow with the profit and loss (or revenue) accounts. As far as possible, keep all asset accounts together, following the same plan with liability and profit and loss accounts.