Trial balance

This refers an internal worksheet which records and balances the debits and credits of all the finance ledgers.

The trial balance is used as a staging point in the production of the main final accounts, statement of profit or loss and the statement of financial position (balance sheet), ensuring all the ledger items are in balance before the overall values are applied to the classifications within the financial statements.

Trial balance is a term normally found in financial accounting. Explore our learning zone to discover more