Accounting – 3.1 The trial balance | e-Consult
3.1 The trial balance (1 questions)
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The trial balance shows a summary of all the ledger accounts and their balances on a specific date (in this case, 31st March 2024).
It provides the accountant with the following information:
- Accuracy Check: It confirms whether the total debits equal the total credits, indicating the mathematical correctness of the ledger.
- Basis for Financial Statements: It provides the starting point for preparing the profit and loss account and the statement of financial position. The balances in the trial balance are used as the opening balances for these statements.
- Error Detection: If the debits and credits don't balance, it signals that errors have occurred in the ledger that need to be identified and corrected.