CAT / FIA FFA Syllabus E. Preparing A Trial Balance - The purpose of a trial balance - Notes ^{1 / 2}

The entries in each ledger account are then totaled and a balance is found.

Balances are usually collected in a trial balance which is then used as a basis for preparing a statement of profit or loss and a statement of financial position.

A trial balance is a list of ledger balances shown in debit and credit columns.

It lists the balances on ledger accounts and totals them.

Total debits should equal total credits.

Therefore, it is a method used to test the accuracy of the double-entry bookkeeping, i.e. the accuracy of the accounting records.