A trial balance is prepared from the general ledger. At the end of an accounting period, companies compile the general ledger from journal entry books filled with the details of every transaction. A trial balance lists all accounts and their respective balances.
A trial balance is a list of all the general ledger accounts contained in the ledger of a business. This list will contain the name of each nominal ledger account and the value of that nominal ledger balance. Each nominal ledger account will hold either a debit balance or a credit balance.
The trial balance, as stated earlier, is not a financial statement. It simply summarises all the transactions on the company's ledgers. A trial balance also does not form part of the final accounts, while a balance sheet is an essential part of those.
Answers & Comments
Answer:
A trial balance is prepared from the general ledger. At the end of an accounting period, companies compile the general ledger from journal entry books filled with the details of every transaction. A trial balance lists all accounts and their respective balances.
Explanation:
Answer:
A trial balance is a list of all the general ledger accounts contained in the ledger of a business. This list will contain the name of each nominal ledger account and the value of that nominal ledger balance. Each nominal ledger account will hold either a debit balance or a credit balance.
The trial balance, as stated earlier, is not a financial statement. It simply summarises all the transactions on the company's ledgers. A trial balance also does not form part of the final accounts, while a balance sheet is an essential part of those.