ASSIGNMENT

Course Name: Basics Accounts - 1

Module 5: Trial Balance

1. What is Trial balance?

A trial balance is financial report showing the closing balances of all accounts in
the general ledger at a point in time

2. List the features of trial balance

1. Credits and debits to each account from transactions during the accounting
period.
2. The associated account names.
3. The associated account numbers.
4. The dates of the accounting period.
5. The total sum of all debit balances and credit balances.

3. Discuss the Objectives of Preparing a Trial Balance

Trial Balance is prepared at the end of a year and is used to prepare financial
statements like Profit and Loss Account or Balance Sheet. The main objective of a
Trial Balance is to ensure the mathematical accuracy of the business transactions
recorded in a company's ledgers.

4. Write the Steps to prepare Trial Balance

 1. Balance each ledger account. Businesses record their transactions as
journal entries at first, and then make the entries in the respective ledger
accounts.
2. Prepare the trial balance worksheet. ...
3. Fill out the worksheet. ...
4. Add the values in each column. ...
5. Close the trial balance.

5. Write a note on Trial Balance & Errors

A trial balance can be used to detect any mathematical errors that have occurred in a
double entry accounting system. If the total debits equal the total credits, the trial
balance is considered to be balanced, and there should be no mathematical errors in
the ledgers