Trial Balance

Trial Balance

Trial Balance is a statement which contains the closing balances of all the ledger accounts as of a particular date. It has two sides: debit and credit to enter the respective closing balances of ledger accounts. The main purpose of running a trial balance is to check whether debit and credit values are equal and to cross verify if journal entries were recorded correctly in all ledger accounts.

It is mainly used for internal purposes so that any mismatch between debit and credit balance can be immediately rectified even before preparing final accounts.

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