Accounting › Section B · Analyzing and recording transactions › Topic B.5
Preparing a trial balance
After a period's entries are posted, the trial balance lines up every account balance in two columns to test whether total debits still equal total credits. It is quick to prepare, catches many slips, and is the starting point for the adjustments that follow, but a balanced trial balance is not proof that the books are right.
In this topic
- What a trial balance is
- The format
- Worked example: Larkhill's trial balance
- What a balanced trial balance cannot prove
- Errors a trial balance does reveal
- Three quick tests for the difference
- Worked example: finding the errors
- Why it is called unadjusted
- Common mistakes to avoid
- Key takeaways
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