What is a Trial Balance?

Open in App

Solution

1. Trial Balance is an abstract or a list of all the ledger accounts as on a specified date showing debit total and credit total of all accounts or their net balances.
2. It is an internal financial report to make sure that the total of debit balances equals the total of credit balances of all the ledger accounts.
3. It forms the basis for preparation of the financial statements which includes trading, profit & loss account and balance-sheet.

Suggest Corrections

Similar questions

Q. What is UNCOMMON in trial balance?

Q. Answer in only one sentence :

What is a Trial Balance?

Q. What are the methods of preparing Trial Balance?

State true or false:

1) A Trial balance is an account.
2) A Trial balance is helpful for preparation of final accounts.
3) A Trial balance is most important document.
4) A Trial balance may be prepared on any date.
5) In Trial balance opening stock is recorded in credit balance column.
6) Both sides total of an account are taken in Gross Trial Balance.
7) Purchase account always shows debit balance.
8) A Trial balance is a List of Ledger balances.
9) A Trial balance does not ensure accounting accuracy.
10) A Trial balance shows only arithmetical accuracy.

What kinds of errors would cause a difference in the trial balance? Also, list examples that would not be revealed by a trial balance?

Join BYJU'S Learning Program