What is trial balance?



What is trial balance?

Trial balance is an internal worksheet produced by the accounting staff of the company. Trial balance has two sides. One side consists of the credit balances and the other side consists of the debit balances. Both the sides of the trial balance should be equal. If they are not equal then that means that there was an error. There might be an error even if the sides are equal, but it is quite easy to identify the error in the trial balance if the sum of the two is not equal.

Businesses prepare the trial balance after getting data from the ledger. The main purpose of the trial balance is to identify any errors in the posting of transactions.






Rating 3.00 out of 5


Leave a Reply