Question

need and importance of trial balance

Answer 1

Trial balance is very necessary for business point of view. It tells the profit or loss of the accounting year and the actual position of the business.

Answer 2

The purpose of a trial balance is to assure that all entries made within an organization's general ledger are accurately balanced. A trial balance records the ending balance in every general ledger account. The total amount of the debits and credits in each accounting entry are assumed to balance. The trial balance is an essential financial means to verify the arithmetical correctness of posting of ledger accounts. Trial Balance benefits professional accountant to match both debit and credit items of income, expenses, assets, and liabilities.