Doing a Trial Balance
First, let’s explain what a trial balance is. Basically it’s a worksheet or report that lists all of the accounts in the general ledger, the monthly summary of account totals, and their year-to-date balances.
If you are using a computerized system, the trial balance can be generated automatically and printed. Even if the accounts are in balance, it still might not mean the numbers are accurate. We’re sure you’ve heard the standard phrase for computer data—“garbage in, garbage out.” The computer may prevent you from making a computer entry that is not balanced, but you can still enter inaccurate numbers.
You’ll get a much better idea of how a trial balance works and the components that make up this balance by doing one ...