Question

Prepare a trial balance of sweet shop

Answer 1

You need to arrange all ledger balance accordance with its balances. All debit balance ledger should be on debit column and credit balance should be on credit column and finally total both the sides. The total of both sides must equal. If it doesn’t match; something went wrong in ledger posting or ledger balancing.

A trial balance tests the arithmetical accuracy of ledger posting before using it to the balance sheet, by ensuring both sides are equal. If both sides are equal we say trial balance is tallied or agreed.However tallying trial balance cannot ensure the 100% accuracy. There may be errors like compensating error which can be find out only after scrutinizing ledger posting .