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Meaning and Definition of Trial Balance

After completion of postings from Journal or Subsidiary Books to the Ledger, the companies want to verify accuracy of the posting. For this purpose a statement is prepared wherein the balances of all the accounts in the ledger are incorporated. The statement so prepared is called “Trail Balance”. Accounts showing debit balances are put on the debit side of the trial balance and the accounts showing credit balances are put on its credit side. If the total of the debit side of the trial balance is equal to that of its credit side, it is presumed that the posting to the ledger is accurate

  • According to Carter, “Trial Balance is the list of debit and credit balances, taken out from ledger, it also includes the balances of cash and bank taken from cash book.”
  • According to William Pickles,” The statement prepared with the help of ledger balances, at the end of financial year (or at any other date) to find out whether debit total agrees with credit total is called Trial Balance.

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