Chapter 5

Trial Balance

This is the third stage in the accounting process after ledgers. Here, the balances of all the ledgers that are carried forward either to the Profit and Loss A/c or to the next period are shown. It has a debit side and a credit side. The respective balances are shown at the appropriate side.

The total amounts on the debit and the credit side should be equal. This certifies the arithmetical accuracy.

In fact, the main objective behind the preparation of trial balance is to ascertain that the accounts are free from arithmetical errors. This builds confidence. It is generally prepared at the end of the period.

The following Performa can be referred to:

Trial Balance As on ______

Sl. no.

Ledger accounts

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