Question

When is trial balance prepared?
A) At the end of an accounting seriod
At the end of a year
Precuently during the year
o the end of a month

Answer 1

A company prepares a trial balance periodically, usually at the end of every reporting period. The general purpose of producing a trial balance is to ensure the entries in a company's bookkeeping system are mathematically correct.

Answer 2

• Trial balance is typically prepared at the end of the accounting year. It is used to check the accuracy of the ledger accounts and thus can be prepared according to the need of the company at the end of any reporting period.
• Trial balance is one of the most important accounts for the auditors to analyse the profit and loss for the business.
• It ensures the accuracy of the ledger account and helps in preparing the financial statements for the business with the correct  objectives.
• It helps to check both the debit and credit side of the ledger, the expenses, the Assets and the liabilities of the company.
• To prepare a correct trial balance unit the closing balance of the general ledger account.  
• The ledger account is prepared from the journal entries which summarises all the financial transactions of the business for a financial year.