What is a Trial Balance?

By QuickBooks Canada Team

0 min read

A trial balance is a financial accounting report that details the debit or credit balance in each general ledger account. Typically used during month-end close or during the preparation of the financial statements, a trial balance can also contain columns to reflect adjusting journal entries. This lets you track changes from an original trial balance to an adjusted trial balance.

The main purpose of a trial balance is to assist in detecting errors. The summation of all debits must equal all credits – otherwise, a posting error has occurred. In addition, a trial balance can help detect abnormal account balances. For example, a trial balance can reveal a negative balance in an expense account that needs to be rectified.

References & Resources

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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