Trial Balance

Introduction:

A trial balance is a statement of debit and credit balance of the ledger accounts which is prepared in order to prove the arithmetical accuracy of the books of account.
It is prepared after the preparation Journal Entry and posting them into ledger account.
It is also called the summary of assets, capitals, liabilities, expenses, income, etc. drawn from the ledger account.

Objectives of preparing a trial balance:

The following are the objectives of preparing Trial Balance;

a)To check arithmetical accuracy of ledger postings
b)To check whether the transactions are posted according to the dual aspect or not
c)To find out the errors
d)To prepare the final account

Advantages of Trial Balance:

•It helps to prepare final accounts.
•If any error is found, it can easily be rectified
•It helps in the internal audit by supplying complete, reliable and accurate accounting information.
•It proves the authenticity of the balance sheet prepared by the business on the given date.
•It proves the arithmetical accuracy of accounting entries in the ledger.

Format of Trial Balance

Trial Balance of ..................................................................................

As on ...........................................................................................

S.No	Name of Account Head	L/F	Dr. Amount	Cr. Amount
	Total		XXX	XXX

Baisc Rules of Trial Balance:

Debit Side	Credit Side
Assets	Capital
Losses	Gain
Expenses	Income and Revenue
Drawing	Liabilities