Trial Balance

It is a list of the balances on the accounts in the ledger at a certain date

Purpose of a trial balance:

  1. Can help in locating arithmetical errors. However, the balancing of the trial balance is not proof that the entries in the ledger accounts are completely free from errors
  2. It is useful in preparing financial statements
Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s