Trial Balance Definition

What is a Trial Balance?

A Trial Balance is a list of all the account balances in the accounting records and is used to check the correctness of the bookkeeping entries.

Under the method for every debit there should be a credit so a list of all the balances in the accounting records should balance.

Until a Trial Balance balances you cannot start the preparation of the Financial Statements. It should be noted that although a Trial Balance may in fact balance, there may still be errors in the accounting records.

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Trial Balance Definition March 23rd, 2016Team

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