Trial balance is a list of accounts and their balances at a given time.
Examples: Trial balances are of various types, such as:
- Initial trial balance,
- Adjusted trial balance,
- Post closing trial balance, etc.
Advantages of Trial Balance
Trial balance has several advantages. Such of them are as follows:
- To check the debits equal the credits.
- To find the uncover errors in journalizing.
- To find the uncover errors in posting.
- To locate the errors in ledger accounts.
- To make financial statements.
- To list the accounts at a single place.
- To know the ending balance of each account at a glance.
- To make the adjustments for unrecorded transactions.
- To find the missing amount of an account in the special case.
- To test the mathematical accuracy of recording process.
In short, trial balance is an essential tool to verify the accuracy of recording process.