Help in the Preparation of the Financial Statements
Trial balance is considered as the connecting link between accounting records and the preparation of financial statements. Since the balances of all accounts appear in the trial balance, it provides a basis for the preparation of the financial statements. In fact, the availability of a tallied trial balance is the first step in the preparation of financial statements. All revenue and expense accounts appearing in the trial balance are transferred to the trading and profit and loss account and all liabilities, capital and assets accounts are transferred to the balance sheet.