Accounts is a subject that keeps track on all the financial transactions. Usually, subsidiary books and journal proper maintain are cord of every transaction in any business. Actual significance of subsidiary books and journal includes making of ledger accounts. The ledger account is nothing but balanced accounts with credit and debit on its sides.
If credit side exceeds the debit side, then it is known as a credit balance. On the other hand, if the debit increases than the credit then it is known as the debit balance. This is how a ledger account is balanced, and then by the help of arithmetical accuracy, the accuracy of the account is being checked. Thus these are the reasons why a trial balance is prepared.
Meaning of trial balance
Trial balance is a statement that consists of debit and credit balanced of ledger account that is used to test arithmetical accuracy of books. It may also be considered with debit and credit total and balance of ledger accounts. Accounts are maintained by equal debit and credit so that both columns must tally and this system is called double entry system. Therefore a balanced debit and credit accounts are arithmetically correct.
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