Question

What is trial balance in accounting with example?

Answer 1

A trial balance is a sheet showing the debit and credit balances of all ledgers.

The purpose of creating a trial balance is to ensure that there aren't any errors in the entries. Both the debit and credit balances at the end must match to verify the trial balance's accuracy.

A trial balance:

• ascertains the arithmetical correctness of the  Ledger Accounts.
• helps prepare the Final Accounts.
• provides a summary of each Account
• helps in locating errors.

Debit balances include assets, direct and indirect expenses. Credit balances include liabilities, income, overdrafts, etc.

Answer 2

Explanation:

Trial Balance

| Example |

Format — AccountingTools The trial balance is a report run at the end of an accounting period, listing the ending balance in each general ledger account. ... For example, an accounts payable clerk records a $100 supplier invoice with a debit to supplies expense and a $100 credit to the accounts payable liability account.

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