trial balance


trial balance
A listing of the balances on all the accounts of an organization, with debit balances in one column and credit balances in the other. If the rules of double-entry book-keeping have been accurately applied, the totals of each column should be the same. If they are not the same, checks must be carried out to find the discrepancy. The figures in the trial balance after some adjustments, e. g. for closing stocks, prepayments and accruals, depreciation, etc. , are used to prepare the final accounts (profit and loss account and balance sheet). See also extended trial balance

Big dictionary of business and management. 2014.