What is a trial balance in accounting?

[alenaghose]

Hi everyone, I’m learning the basics of accounting and came across the term “trial balance.” Can someone explain what a trial balance is, its purpose, and why it’s important in the accounting process? Thanks in advance for the help!

 

[maria]

A trial balance in accounting is a report that lists all the debit and credit balances of a company’s general ledger accounts at a specific point in time. Its main purpose is to:

• Ensure debits equal credits, confirming the books are balanced
• Detect errors in recording transactions
• Serve as a basis for preparing financial statements

It doesn’t catch all mistakes (like missing entries), but it’s a key step in the accounting cycle.

 

[robertwilliam]

A trial balance is a simple financial statement that summarizes all the debit and credit balances from a company's general ledger at a specific point in time.

 

[Shane Warne]

A trial balance is a financial report that lists all ledger account balances at a specific date to ensure total debits equal total credits, verifying the accuracy of bookkeeping.