What is a Trial Balance?

A trial balance is a list of accounts and their balances at a given time.

Customarily companies prepare a trial balance at the end of an accounting periods. They list accounts in the order in which they appear in the ledger. Debit balances appear in the left column and credit balances in the right column.

The trial balance proves the mathematical equality of debits and credits after posting. Under the double-entry system, this equality occurs when the sum of the debit account balances equals the sum of the credit account balances.

​A trial balances may also uncover errors in journalizing and posting.

​Establishing business policy and procedures will support in ensuring personnel understanding the connection between journalizing and posting to the trial balance.

It is always the start that requires the greatest effort. – James Cash Penney