What is Trial balance?
A trial balance lists the closing balance of every account, with total debits equal to total credits. It is the standard check that the books are internally consistent before financial statements are prepared.
A trial balance lists the closing balance of every account, with total debits equal to total credits. It is the standard check that the books are internally consistent before financial statements are prepared.
In Bangladesh
It is usually the first document an external accountant asks for at year end, and the first thing that reveals whether the year was actually kept in double entry or reconstructed from a cash book in the last week.
An example
At year end an external accountant asks for the trial balance as at 30 June. If it balances and each line drills down to real transactions, the audit is a review. If it was assembled from a cash book in the last week, it is a reconstruction.
In SORS ERP
The trial balance in SORS ERP is produced for any date range from the live ledger, with accounting periods that can be locked so the figures stop moving once a period is closed.
Also called
- In Bangla
- রেওয়ামিল
Questions
Answered plainly, including where the answer is no.
What if my trial balance does not balance?
In a double entry system it always balances, because every entry posts equal debits and credits. What can be wrong is that entries are missing or posted to the wrong account, which shows up as a balance that does not make sense rather than one that does not add up.
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