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CLASS – XI

ACCOUNTANCY

LESSON NOTE – TRIAL BALANCE

Meaning of Trial Balance:

Meaning – When posting of all the transactions into the Ledger is completed

and accounts are balanced off, then the balance of each account is put on a

list called Trial Balance.

Objectives of Trial Balance :

The main objectives of trial balance and the reasons for its

preparation:

i. It ensures that the posting from the ledgers is done correctly. If
there are any arithmetic errors in the accounting then this will get

reflected in the trial balance. And we can determine this when the
total of the debit column and the credit column do not match.

ii. Similarly, it will also detect clerical errors, like a fault in posting,

mixing up of figures, etc.

iii. Trial balance will also help in the preparation of the final accounts.

The balances for the financial statements are taken from the trial
balance.

IV. The trial balance will also serve as a useful summary of all

accounting records. It is a summary of all the ledger accounts of a

firm. We will only refer to the individual ledger accounts if any details

are needed. Otherwise, we rely on the trial balance.