Accounting – Trial Balance
You read that even in case of computerized accounts, there can be errors, leading to un-matching of a trial balance.
The key reasons why a trial balance is prepared are as under:
- It brings together all the balances of all accounts
- It acts as a check on the accuracy of the posting activities, both in the manual and the electronic environment
- It is used as a base for preparation of interim / final accounts
- It throws out some blaring factual errors before final accounts can be prepared.
Below is a sample how a trial balance will look like…
I will share what type of errors creep into a trial balance preparation in the next post.
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