Topic Content:
- Definition of Trial Balance
- Uses of Trial Balance
- Balances that Form Trial Balance
- Debits and Credits
- Causes of Unbalanced Trial Balances
- How to Find the Error
- Errors that do not affect Trial Balance Agreement
What is a Trial Balance?
A trial balance is a statement showing a list of balances, in a double-entry extracted from the ledgers, to test the arithmetical accuracy of the accounts.
A trial balance is a list of ledger balances. It is a summary of all the debit and credit balances in the ledger including the cash book and petty cash book.
Uses of Trial Balance:
Below are some uses of Trial Balance;
1. To check the accuracy of entries made in the ledger.
2. To give first-hand information to the bookkeeper about errors in recording transactions/committed to posting into the ledger.
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