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Why is trial balance prepared?

Why is trial balance prepared?

by Ahmed Nafis Newaz -
Number of replies: 1

Trial balance is prepared to ensure the arithmetic accuracy of the debit and credit ledger balance in the books of accounts and to provide information for the preparation of the final accounts.

We know, preparing a trial balance for a company serves to detect any mathematical errors that have occurred in the double-entry system. If the total debits equal the total credits, the trial balance is considered to be balanced, and there should be no mathematical errors in the ledgers.