Learn what a trial balance is, how it works, and its purpose in ensuring accurate bookkeeping by ensuring debits equal credits in ledgers. Learn about trial balance , its types, format, purpose, limitations, and differences from the balance sheet. Understand how it works with examples and more. What is Trial Balance ? A trial balance is prepared at the end of the year after all accounting entries for the year are done and completed. All journal entries are posted in their respective ledger accounts. The totalling of the accounts is done and all the accounts are balanced. The trial balance is in a T-Format having a debit side and a credit side. All debit balance accounts are recorded on the debit side and all the credit balance accounts are recorded on the credit side of the trial ... A Trial Balance is a statement that keeps a record of the final ledger balance of all accounts in a business. It has two columns – debit and credit. Trial Balance is prepared at the end of a year and is used to prepare financial statements like Profit and Loss Account or Balance Sheet. The main objective of a Trial Balance is to ensure the mathematical accuracy of the business transactions recorded in a company’s ledgers. Preparing a Trial Balance :
