9706 · 1.4.2
Trial balance
9706 P2 — preparing a trial balance, suspense account, and errors revealed/not revealed.
Need to know
What you need to know
- It is a list of all ledger account balances.
- Its primary function is to check the arithmetical accuracy of the ledger.
- Total debit balances must equal total credit balances.
- It is an internal working paper, not a formal financial statement.
- It is the basis for preparing the income statement and statement of financial position.
Explanation
Trial balance
- It is a list of all ledger account balances.
- Its primary function is to check the arithmetical accuracy of the ledger.
- Total debit balances must equal total credit balances.
- It is an internal working paper, not a formal financial statement.