Question

Answer in only one sentence :

What are the main types of Trial Balance?

Answer 1

Trial Balance can be of the following two types:

(1) Gross Trial Balance: Gross Trial Balance shows the total amount of the debit side of each ledger in the debit column and the total amount of the credit side in the credit column of the Trial Balance. This Trial Balance can be prepared immediately after posting all the Journal entries.

(2) Net Trial Balance: Net Trial Balance shows the debit and credit balances of ledger accounts in their respective columns. This Trial Balance is prepared only after all the ledger accounts are balanced.