The trail balance

Question 1

Explain two reasons for preparing a trail balance

Answer 1

A trail balance is a check on the arithmetical accuracy of posting to the ledger accounts. if the debit and credit totals are equal. then arithmetically the ledger entries are correct.
It provides a convenient list of ledger balances from which the final accounts can be prepared. It will be very useful if debtors and creditors balances are included

Question 2

A trail balance has a … and a … section

Answer 2

Balance sheet account section

Nominal Account

Question 3

What is the meaning of the term trial balance

Answer 3

A trail balance is neither a book nor an account, but simply a list of balances extracted from the general ledger as well as cash and bank balances in the cash book and the petty cash balance in PCB. For every debit entry there is a corresponding credit entry and vica versa.