What is trial balance
Trial balance is a statement of all accounts, showing the sum of all entries posted to an account. It is a status report of the balance on each account.
The term trial balance is also often used instead of trial balance.
What does a trial balance contain?
Trial balance is a report that contains two columns of numbers. One column shows the movements for the period, while the other column shows the cumulative balance. Therefore, you can compare the trial balance with previous periods.
The trial balance, or balance sheet, shows the status of the account balance and the balance between assets and liabilities.
The bookkeeping in the trial balance follows the principle of double-entry bookkeeping. This means that transactions are posted on debit (+) and credit (-) to show where the value has ended up and how it has been paid. This way, the trial balance equals zero, which is how you want it to be.
When is a trial balance used?
How often you need a trial balance or balance sheet will vary depending on the type of business you have. It is essentially a status report where you can see how your business is doing.