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In the previous chapters, you have learnt how to record and classify the transactions in various accounts along with balancing thereof. All balances of the accounts are listed in a statement, called trial balance. The trial balance is a summary statement of all balances. It enables us to check the arithmetical accuracy of the transactions recorded in the ledger accounts. Since every debit has a corresponding credit, the total of debits should be equal to total the total of credits in the trial balance. Thus, it is a tool for verifying the correctness of debit and credit amounts. It is an arithmetical check under the double entry system which verifies that both aspects of every transaction have been recorded accurately. This chapter explains the meaning and process of preparation of trial balance and the types of errors and their rectification.

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