The main objectives of trial balances are given below:
Check arithmetical accuracy
Trial balance helps to check arithmetical errors.
Trial balance determines only the arithmetical accuracy and not the accounting accuracy.
If debit and credit balances are equal, we assume ledgers are correct.
Help to find-out accounting errors
The disagreement of a trial balance indicates that there are some accounting errors.
Trial balance helps to find-out some accounting error.
Summarize the financial transactions
Trial balance is the summary of all financial transaction during an accounting period.
It is prepared from all accounting balances.
Base for final account
Trial balance is the base to prepare final account.
Without trial balance, it is very difficult to prepare final account.
Final account contains trading account, profit and loss account and balance sheet.
Debit and credit
Trial balance provides overall summary of all the ledger accounts.
It separates debit and credit of summarised ledger account.
Expense and assets are shown in debit side but income and liabilities are shown on credit side.
Comparative study of each account
To prepare trial balance, we need balances of accounts.
From balances of accounts, we can compare data of last year with current year.
It also helps to make financial budget by comparing last year’s trial balance.
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ACCOUNTING EQUATION http://tiny.cc/c89jkz
BASIC JOURNAL ENTRIES IN NEPALI http://tiny.cc/uaakkz
BASIC JOURNAL ENTRIES http://tiny.cc/8aakkz
JOURNAL ENTRY AND LEDGER http://tiny.cc/caakkz
SUBSIDIARY BOOK http://tiny.cc/399jkz
CASH BOOK http://tiny.cc/889jkz
TRIAL BALANCE & ADJUSTED TRIAL BALANCE http://tiny.cc/c59jkz
BANK RECONCILIATION STATEMENT (BRS) http://tiny.cc/q59jkz
FINAL ACCOUNT: CLASS 11 http://tiny.cc/y89jkz
ADJUSTMENT IN FINAL ACCOUNT http://tiny.cc/keakkz
CAPITAL AND REVENUE http://tiny.cc/peakkz
SINGLE ENTRY SYSTEM http://tiny.cc/n19jkz
NON-PROFIT ORGANIZATION (NON-TRADING CONCERN http://tiny.cc/j09jkz
GOVERNMENT ACCOUNTING http://tiny.cc/hcakkz
GOSWARA VOUCHER (JOURNAL VOUCHER) http://tiny.cc/hcakkz
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