Preparing a trial balance, what it checks, and the errors it does and does not reveal.
The trial balance lists every account's closing balance to check that total debits equal total credits.
Preparing a trial balance
List each account in a debit or credit column:
- Debit balances: assets, expenses, drawings.
- Credit balances: capital, liabilities, income (sales).
If the two columns are equal, the books are arithmetically correct.
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