Special Features of Trial Balance
These are the following unique features of trial balance:
Purpose and functions of trial balance:
Purpose of making a trial balance is the following:
Accuracy of the arithmetical calculations actually is best test for trial balance. If all collected data are put incorrect pattern then, debit and credit of trial balance must have to be equal.
Trial balance actually can keep a track on all the ledger accounts. It contains all names and debit or credit details of all ledger account. Thus trial balance made it easy to look at the ledger accounts and therefore making the whole process easy.
Conclusion that we come on to at the end of a trial balance is to know the profit amount and also the value of different assets and liabilities. This also helps in making final accounts. Thus lays significance of preparing a profit and loss account and a balance sheet by information supplied by trial balance.
When in the process of making final accounts, certain changes must be done like closing stock, outstanding and prepaid expenses, accrued and unearned income, etc.are done. So trial balance helps to adjust all these information.
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