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Why is Trail Balance prepared?

why is Trail Balance prepared

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Question added by Dasarathi Rath , Sr. Accountant , Al Luban Special Investment LLC
Date Posted: 2014/02/02
MALIIK SOHAIL ABBAS
by MALIIK SOHAIL ABBAS , ACCOUNTS MANAGER , AL RAWDAH GREEN SWEET WATER

TRAIL BALANCE presents the true picture of company assets , liabilities , income , expense .

Mahmoud Haggagi
by Mahmoud Haggagi , Supply Chain Director , Abunayyan Holding Co

This to detect any error it may happen during the entry accountant system and to ensure the arithmetic accuracy of the debit and credit ledger balances in the books of accounts. 

Tariq Raza
by Tariq Raza , MANAGER FINANCIAL PLANNING AND ANALYSIS , MBE ACCOUNTING CANADA

Trial Balance is the only document whcih shows any time the balances of Accounts which extracted from ledger , also useful for preparation of Financial Statement as well.

Faiz Muhammad
by Faiz Muhammad , District Coordinator , Pak Alliance for Math & Science Welfare Trust (PAMS)

Preparing a trial for a company serves t o detect any mathematical errors that have occurred in the double entry accounting system.

Waseem Hussain
by Waseem Hussain , Professional Accountant , The Educator in Commerce

Trial Balance is prepared to check wether entries are mathematically correct or not.

therefore if the debit and credit side are equal in balance that meas we have recorded entries in general ledgers correctly, incase trail balance shows the difference in debit and credit side it means there is mathematic error in ledger.

Its main purpose is to allow you to catch any accounting errors and then make any necessary adjustments,so that your financial statements are completely accurate.

Zaheer Waheed
by Zaheer Waheed , Senior Regional Accounting Manager - Poultry Sales , Almarai Company - Alyoum

Brother, the purpose of Trial Balance is to ensure that all the debit and credit values tally.

Trailing, through the listh of nominal ledger balances , ensure that accurate balance have been put forward for financial reporting.

If the balances do to tally, that mean error need to be found, before Balance sheet and Profit and Loss account is made.

 

In a nut shell, if recoding is proper and accurate (e.g no transposition error, omisison error, in correct posting etc)... the trail balance is a good tool to ensure double entry has been properly.

 

 

Deleted user
by Deleted user

IT IS PREPARTED PRIOR FINANCIAL STATEMENTS PREPERATION

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