Question

What is Trial Balance ? Explain the various

forms in which it is prepared.

Answer 1

Trial Balance is a list of closing balances of ledger accounts on a certain date and is the first step towards the preparation of financial statements. It is usually prepared at the end of an accounting period to assist in the drafting of financial statements.

Answer 2

A trial balance is a list of total of all the debit and credit accounts for an entity for given period- usually a month. Key to preparing a trial balance is making sure that all the account balances are listed under the correct column. The appropriate column are as follows:-)
Assets - debit balance
Liabilities - credit balance
Expenses -debit balance
Equity - credit balance
Revenue - credit balance