What is trial balance?

Trial balance is a list of accounts and their balances at a given time.

Examples: Trial balances are of various types, such as:

  1. Initial trial balance,
  2. Adjusted trial balance,
  3. Post closing trial balance, etc.

Advantages of Trial Balance

Trial balance has several advantages. Such of them are as follows:

  • To check the debits equal the credits.
  • To find the uncover errors in journalizing.
  • To find the uncover errors in posting.
  • To locate the errors in ledger accounts.
  • To make financial statements.
  • To list the accounts at a single place.
  • To know the ending balance of each account at a glance.
  • To make the adjustments for unrecorded transactions.
  • To find the missing amount of an account in the special case.
  • To test the mathematical accuracy of recording process.

In short, trial balance is an essential tool to verify the accuracy of recording process.