trial balance

noun

, Bookkeeping.

a statement of all the open debit and credit items, made preliminary to balancing a double-entry ledger.

trial balance

accounting a statement of all the debit and credit balances in the ledger of a double-entry system, drawn up to test their equality

First recorded in 1830–40

Understanding of debit and credit, posting, and trial balance, is the maximum practical need of the younger workers.

Such a list is called a trial balance, an example of which is given below.

Taking the trial balance shown above, the following represent the trading account, profit and loss account, Balance sheet.

A glance at the trial balance reveals scarcely a trace of expense, the small undistributed balances only remaining.

The trial balance shows but one item of general expense—the distribution account.

April 25, 2024firkin

[fur-kin ]

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