Describe the purpose for the preparation of trial balance.
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The purpose for preparing the trial balance is to make sure that the debit and credit entries are properly balanced in a company's general ledger.
Explanation:
Trial balance is an integral part of accounting. It is a statement that is consist of debit and credit amounts in a double-entry book.
The purpose for preparing the trial balance is to make sure that the debit and credit entries are properly balanced in a company's general ledger.
It also lists the closing balance of all general ledgers. It matches the debit and credit entries of each accounting year. Its purpose is vital, if a manual record keeping organization is using this statement.
It is also used by the auditors for the purpose of ensuring flexible audit procedures.
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