What is trial balance, Accounting Basics

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What is TRIAL BALANCE

This statement is a listing on a certain date which demonstrates all accounts and their balances. This generally happen at the end of the month however it could be any time.

This isn't a formal financial statement.

* Although the credits and debits equal, there could still be errors. Check carefully to see that you have used correct amounts.

For each account you should find a balance. This is known as Footing. For every account, add the debits together, and then add credits. Subtract two amounts and list difference on same line and side as the balance. Use a pencil (pencil footings).

 


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