How to prepare a trial balance pdf
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List of debit and credit items in trial balance...
Trial Balance: Meaning, Objectives, Preparation, Format & Example
Trial Balance is basically a statement having a debit side and a credit side where all the debit balances of journal entries and ledger postings are recorded on the debit side of the trial balance, and all the credit balances of journal entries and ledger postings are recorded on the credit side of the trial balance.
These postings are recorded in the trial balance to verify and check for the correctness of the journal entries and ledger postings. This is because if the debit and credit side of the trial balance agrees, then it is assumed that the journal, subsidiary books, and ledgers are correctly and properly maintained.
How to prepare trial balance from ledger with example
The main reason for the trial balance to match is the ‘Double Entry System’ of accounting. According to the double entry system, every transaction is recorded twice, once on the debit side and the other on the credit side.
So, for every debit entry, there is a corresponding credit entry. Though it is not conclusive proof of the correctness of all books of accounts because ther
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