Trial Balance!

In all the debit and credit statements of the double entry account, the discrepancy indicates an the error.

The trial balance is a brochure that sets the credit for all the books credit and loans set. Companies usually prepare trial balance periodically at the end of the each reporting period. The general purpose of the trial balance to ensure that the entries to the accounting system of the company are the mathematically correct.

By creating an enterprises the trial balance, You can detect the mathematical errors that occurs in a dual input accounting system. If the total amount of the borrower money is equal to the total credit, the balance of the trial balance is deemed to be the outstanding and should be no mathematical error in the accounting record. However, this does not means that there is no error in the company's accounting system. For Example, a transaction that is no properly classified or a transaction that is missing from the system may be an accounting material error that can not be tracked by the balance.

Evaluation of the trial balance and roles in accounting process:

The balance of the trial balance is an internal report at the end of the accounting period and the final balances is recorded in the each account. The report is mainly used to ensure that the of all the debit equal the sum of all the credit. In short, There are no impossible entries in the accounting system, so accurate the financial statement. Judges typically ask for the end-of- the year the trial balance when initiating audit to moves the account balance in to the audit report. They can request an electronic version that can be easily copied in to the software.

Although the balance of trial balance can also be used to prepare financial statement, the dominant use of the computer accounting system will automatically create a report to be used for this purpose.

Essentially, there is no need to use the trial balance report in the accounting activities.

When the initial balance of the trial balance is pressed down, it is called unbalance trail balance equilibrium. Next, if the accounting team corrects the errors and the adjust them to displayed the financial statement according to accounting standard ( such as GAAP and IFRS), this report is called a fixed balance trial balance. Appropriate trial balance report are usually printed on the year- end book and stored. Finally, after the period is called the trial balance after the closure.

The balance of the trial balance is the strictly a report accumulated from the account book. However, as a result of the review of the report, this can be done, but the balance sheet accounting contains a configuration process the convert the unadjusted trial balance is in an adjusted trial balance equilibrium state.

Trial balance equilibrium format >

The first trial balance report has the following column:

1. Account number
2. account name
3. Final flow balance (if applicable)
4. Balance of credit period ( if applicable)

Each line contains only one the final account balance. All the account with final balance are listed in the trial balance. Normally the accounting software automatically includes all known account with the zero balance.

In a modified version of the trail balance, you can combine debit and credit in single column and add column to display the corresponding entries and correct balance.