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A Trial Balance is a list of the balances on all the accounts in the books. It is a statement and not an account. It forms no part of the double entry nor does it appear in the actual books of accounts. It is a statement drawn up as a test of arithmetical accuracy of ledger accounts. It is prepared as on a particular date and not for a period.

The agreement of trial Balance is not a conclusion proof of absolute accuracy of the books of accounts. Errors like error of principle, ommission or duplication, error of original entry, errors of commission and compensating errors are not disclosed by trial balance.

The objects of preparing trial balance are:

1. To ensure that there are no arithmetical errors

2. To obtain a summary of ledgers accounts

3. To facilitate the preparation of final accounts and balance sheet

Determination of Debit and credit Balance (generally)

Asset and expenses have a debit balance

Capital, liability & revenue has credit balance

 

Statement of trial Balance

                        Trial balance of….. as on…..(particular date)

Particulars

L.F

Debit

Amount

Credit Amount

 

 

 

 

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