Chapter 6
6. Trial Balance
Definition: A list balances extracted from all ledger accounts with their debit or credit balances on a specific date. We "trial" to check if Dr = Cr. Purpose: 1. Test arithmetical accuracy of ledger posting 2. Basis for preparing Final Accounts 3. Detect errors - but not all errors Rule: Total Debits = Total Credits. If not equal, there’s an error somewhere.
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6.1 Extracting the Trial Balance
✓ A list of all the debit and credit balances extracted from the ledger accounts at a specific point in time.
Purpose:
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