Trial Balance
Two reasons for preparing a Trial Balance
A Trial Balance is a check on the arithmetic all accuracy of posting to the ledger accounts If the debit and credit totals are equal, then arithmetically the ledger entries are correct It provides a convenient list of ledger balances from which final accounts can be prepared It will be very useful if debtors and creditors balances are included
Meaning of the term "Trial Balance"
A Trial Balance is neither a book nor an account, but simply a list of balances extracted from the General Ledger as well as can and bank balances in the Cash Book and the petty cash balances in the Petty Cash Book. For every debit entry there is a corresponding credit entry and vice versa
Sections in a Trial balance
Balance sheet account section Nominal account section