Ankit Lal Karn ACW Accounts

A trial balance is a statement that shows sum total of the debit and credit balance of each ledger account.

It is prepared with a view to check the arithmetical accuracy of accounting records.

It is prepared at the end of the accounting year.

  1. To ascertain arithmetical accuracy.

  2. Helps in finding the error or errors.

  3. Helps in the preparation of the financial statement.

      Particular        L.F             debit        credit 

      Asset                                  xx

     Liability                                                xx

     Capital                                                 xx

     Profit                                                    xx

     Loss                                      xx

      Revenue                                                xx

     Expense                                xx  

  1. Find the balance of each ledger account

  2. Place each account in their debit or credit column respectively.

  3. Calculate the sum total of the debit column

  4. Calculate the sum total of the credit column.

  5.  Verify if the sum total of debit is equal to the credit column or not.


  1. Total method

  2. Balance method

  3. Total-cum-balance method.

  1. The error of commission.

  2. The error of omission.

  3. The error of principle.

  4. Compensating error.

  1. Error affecting trial balance.

  2. Errors that do not affect trial balance.

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