A trial balance lists all the accounts and their corresponding balances as on a particular date. It indicates whether an account has a debit or a credit balance. Consider the features of a trial balance and respond to the following:
– Discuss the importance of preparing a trial balance while entering transactions using a computerized system. Include any and all references used.
A trial balance is the third step in the preparation of books of accounts, next to the preparation of journal entries and posting it to ledger accounts. After the journal entries are posted to the ledger accounts, the individual ledger accounts are balanced and the closing balances are determined. These closing balances (with respective debits and credits) are carried over to the trial balance to determine if the total of the debits equal the total of the credits. If the debits and credits do not tally in trial balance, we can conclude that there are errors in …
This 361 word solution discusses the importance of preparing a trial balance and includes a list of sources for reference.
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