📝 One-liners · 66 cards
Trial Balance, rectification of errors and adjusting and closing entries
What is a Trial Balance?
A Trial Balance is a statement prepared at the end of an accounting period listing all ledger account balances to verify that total debits equal total credits.
What are the two columns in a Trial Balance?
Debit column and credit column totals.
What is the primary purpose of preparing a Trial Balance?
The primary purpose is to check the arithmetical accuracy of ledger postings and ensure that the double-entry principle has been correctly applied.
What does it mean when Trial Balance totals agree?
Arithmetical accuracy of ledger postings is confirmed.
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