Discussion Topic

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

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

by Ahmed Nafis Newaz -
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. The 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.