Trial balance is a statement in which debit and credit balances of all ledger accounts are shown to test the arithmetical accuracy of the books of account. Trial balance is ledger is not conclusive proof of accuracy of books of accounts.
Features of a trial balance
1. It is not an account, it is only a statement which is prepared to verify the arithmetical accuracy of ledger accounts.
2. It contains debit and credit balances of ledger account.
3. It is prepared on a particular date generally at the end of business year.
4. Trial balance helps in preparing final accounts.
5. As it is prepared by taking up the ledger account balance, both debit and credit side of a trial balance are always equal.
6. The preparation of trial balance is not compulsory. There is no hard and fast rule in this regard.
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