Discussion Forum

Why is trial balance prepared?

Why is trial balance prepared?

by Fouzia Faria -
Number of replies: 0

The purpose of a trial balance is to ensure that all entries made into an organization's general entries are properly balanced. A trial balance lists the ending balance in each general ledger account. The total dollar amount of the debits and credits in each accounting entry are supposed to match. Therefore, if the debit total and credit total on a trial balance do not match, this indicates that one or more transactions were recorded in the general ledger that were unbalanced.