Discussion Topic

Why it is said that same amount in Debit and Credit side in Trial balance does n't ensure the mathematical accuracy of financial transactions?

Why it is said that same amount in Debit and Credit side in Trial balance does n't ensure the mathematical accuracy of financial transactions?

by jasia hossain omi -
Number of replies: 0

The trial balance is prepared after all the transactions for the period have been journalized and posted to the General Ledger. Key to preparing a trial balance is making sure that all the account balances are listed under the correct column. The appropriate columns are as follows:

Assets = Debit balance
Liabilities = Credit balance
Expenses = Debit Balance
Equity = Credit balance
Revenue = Credit balance