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Trial Balance

All the transactions of financial nature are recorded in the books of accounts. Journal proper and subsidiary books record all business transactions originally. With the help of subsidiary books and journal, we prepare ledger accounts. These ledger accounts have the debit and credit sides. The ledger accounts are balanced. If the credit side exceeds the debit side, the excess is known as credit balance. In the same way, excess of debit side of an account over its credit side shows debit balance. After balancing ledger accounts, we would like to check the arithmetical accuracy of our accounts and for this purpose trial balance is prepared.


Trial balance is a statement, prepared with the debit and credit balances of ledger accounts to test the arithmetical accuracy of the books. It may also be prepared with debit and credit totals of ledger accounts and also with the balances and totals of ledger acc.ounts. Books of accounts are maintained according to the ‘Double Entry System’, where every debit has its corresponding credit, so the total of the debit and credit columns of the amount column must tally. If the total of debit and credit amount column is equal, we assume our books of accounts to be arithmetically correct, but it should not be taken it as the conclusive proof of arithmetical accuracy.