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← Accounting notes
Edexcel ·Accounting·Cambridge IGCSE Accounting

The Trial Balance

12 min read

Preparing a trial balance, what it does and does not prove, and the errors not revealed by it.

Purpose of the trial balance

A trial balance is a list of all the ledger account balances at a point in time, with debit balances in one column and credit balances in another. It is prepared to:

    check the arithmetical accuracy of the double entry (the two totals should agree),
    provide a starting point for preparing the financial statements.

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More Accounting notes

Introduction to Accounting & the Accounting Equation

Double-entry Bookkeeping & Ledger Accounts

Books of Prime Entry & the Cash Book

Income Statements (Trading & Profit/Loss)