Trial Balance

A worksheet listing all ledger balances to check that total debits equal total credits.

A trial balance lists the closing balance of every ledger account, separated into debit and credit columns, at a given date. Its purpose is to confirm that the books are arithmetically balanced.

If total debits equal total credits, the entries are mathematically consistent (though not necessarily error-free). The trial balance is the starting point for preparing the P&L and balance sheet.

• Total debits must equal total credits.
• A check on double-entry bookkeeping accuracy.
• Basis for final accounts (P&L, balance sheet).