What is Trial Balance? Write details about its importance?
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Trail balance
A trial balance is a sheet recording all the ledger balances categorized into debit and credit. A typical trial balance will have name of ledger and the balances. This is prepared as at a particular date which can be financial year end or calendar year.
importance of trail balance
Trial balance provides a basis for the preparation of final accounts. It ensures that the transactions recorded in the books of accounts have identical debit and credit amount. It shows that the balance of each ledger account has been computed correctly.
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