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TRIAL BALANCE
CONTENT
- Meaning of Trial Balance
- Uses/Functions or Purpose of Trial Balance
- Balances that Form the Trial Balance
- Formation of Trial Balance From the Ledger
- Identification of Balance Sheet Items on the Trial Balance
Meaning of Trial Balance
A trial balance is a list of balances extracted from the ledger. It consists of individual debit and credit balances from various ledger accounts.
Uses/Functions or Purpose of Trial Balance
(i) It is used to check the arithmetic accuracy of the ledgers.
(ii) It is used as a statement that shows individual credit and debit balances obtained from the ledger account with the sum of each set of balances.
(iii) It helps in identifying computation errors in recording business transactions.
(iv) It encourages compliance and adherence to double-entry book keeping rules.
(v) It acts as a trainee manual for the bookkeeper.
(vi) It shows the summarized balance in the general ledger or book of account.
(vii) It is helpful in determining the profit or losses of a business.
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ClassHall Instructor
Halima Ahmadu
Maryam
Abdul tawwab
Honour Daniel
Wilfred Bassey