Trial Balance

Trial Balance acts as the first step in the preparation of financial statements. It is a working paper that accountants use as a basis while preparing financial statements.

 Checks the arithmetical accuracy of the double entry transactions of the business

To check the debits, equal the credits       

To find the uncover errors in journalizing

To locate the errors in ledger accounts

It does not prove that all transactions have been recorded

It does not prove that the ledger is correct

Numerous errors may exist even though the trial balance columns agree