Three (3) uses of trial balance.

Trial balance is the list of balances extracted from the ledger accounts at the given date, arranged according to whether they are debit balances or credit balances. The total of the debit and credit balances should agree if the double entry rules have been properly followed.

The following are uses of trial balance:

  • To check the arithmetic accuracy of entries in the ledger account.
  • To detect such errors of posting that can easily be identified by trial balance.
  • To facilitate easy preparation of final accounts (financial statements)

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