About Trail Balance
Trail Balance:- After posting the accounts in the ledger, a statement is prepared to show separately the debit and credit balances. Such a statement is known as the Trail Balance. It may also be prepared by listing each and every account and entering in separate columns the totals of the debit and credit sides. Whichever way it is prepared, the totals of the columns should agree. An agreement indicates reasonable accuracy of the Accounting work, if the two sides do not agree, then there is simply an arithmetic errors(s) This follows from the fact that under the Double Entry System, the amount written on the debit side of various accounts is always equal to the amounts entered on the Credit side of other accounts and vice versa. Hence the totals of the debit sides must be equal to the totals of the Credit side. Also, total of the debit balances will be equal to the total of the Credit balances. Once this agreement is established, there is a reasonable confidence that the Account