A trial balance is a bookkeeping worksheet in which the balance of all ledgers are compiled into debit and credit account column totals that are equal. The general purpose of producing this worksheet is to ensure the entries in a company’s bookkeeping system are mathematically correct. If you have been entering transactions manually, you create this worksheet by listing all the accounts with their ending debit or credit balances. Then, you total the debit and credit columns. If the totals at the bottom of the two columns are the same, the trial is a success and your books are in balance. You should not include income statement accounts such as the revenue and operating expense accounts. Other accounts such as tax accounts, interest and donations do not belong on a post-closing trial balance report. The purpose of a trial balance is to ensure that all entries made into an organisation's general ledger are properly balanced.

Saket Kumar

116 resources

0

1

1

Like