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.
To ascertain arithmetical accuracy.
Helps in finding the error or errors.
Helps in the preparation of the financial statement.
Particular L.F debit credit
Find the balance of each ledger account
Place each account in their debit or credit column respectively.
Calculate the sum total of the debit column
Calculate the sum total of the credit column.
Verify if the sum total of debit is equal to the credit column or not.
The error of commission.
The error of omission.
The error of principle.
Error affecting trial balance.
Errors that do not affect trial balance.