Sahil, SME at Edumarz
Solution:- When all the businessmen after completion of postings from Journal Books to the Ledger, want to check the accuracy of posting. For this purpose, they create a statement called Trial Balance. In the trial balance, the balances of all ledger accounts are included. Those accounts which show debit balance are put on the debit side of the trial balance. The accounts showing credit balance are put on its credit side of the trial balance. If the total of both sides is equal then it is presumed the posting to the Ledger is accurate. The trial balance follows the double-entry system in which each transaction is recorded two times, once on the debit side and again on the credit side of another account. From this the total of all the entries on the debit side of all accounts. If the total of both sides of a trial balance is equal then books are correct. In short Trial Balance is the list of debit and credit balances, taken out from the ledger. It also includes the balances of cash and bank taken from the cash book.