A trial balance is an important accounting statement. In other words a trial balance consists of debit and credit balances of each head of account in an organization or company.
Debit and credit balances are brought into the trial balance from the General ledger. The purpose of preparing trial balance enable the company or business organization to know in random what are the debits the company or organization has and what are the credits the company or organization has.
Normally debits are expenditure to the company and credits are income to the company organization.
Trial balances are prepared on monthly basis normally. In a bigger organization or company quarterly trial balance and half-yearly trail balance will also be prepared.
Besides the monthly, quarterly and half-yearly trial balance an annual trial balance will also be prepared for accounting purpose. Trial balance will also become source record for for preparing trading account, profit and loss account and balance sheet.
Debit and credit balances are brought into the trial balance from the General ledger. The purpose of preparing trial balance enable the company or business organization to know in random what are the debits the company or organization has and what are the credits the company or organization has.
Normally debits are expenditure to the company and credits are income to the company organization.
Trial balances are prepared on monthly basis normally. In a bigger organization or company quarterly trial balance and half-yearly trail balance will also be prepared.
Besides the monthly, quarterly and half-yearly trial balance an annual trial balance will also be prepared for accounting purpose. Trial balance will also become source record for for preparing trading account, profit and loss account and balance sheet.
