Preparing an after-closing trial balance. Ensuring that the ledger "remains in balance after Posting of the closing entries."
Prepare the trial balance to make sure that debits equal credit;
Preparing an adjusted trial balance proving again the equality of debits and credits in the ledger account.
Summarizing debit and credit amounts and calculating the balances of the ledger accounts, and preparing a unadjusted trial balance based on the balance, thus proving the equality of debits and credits in the ledger account.
trial balance of subsidiary ledger
The trial balance can make the preparation of financial statements easier.
A trial balance is a list of all accounts with their balances-as-sets first, followed by liabilities and then owner's equity.
After the adjustments are journalized and posted, a useful step in preparing the financial statements is to list the accounts, along with their adjusted balances, on an adjusted trial balance.
The trial balance can prove the equality of debit and credit balances in the ledger accounts.
The closing entries can be (a) taken directly from the worksheet, or (b) developed from the adjusted trial balance, if a worksheet is not prepared.
Prepare trial balance and financial reports.
The unadjusted trial balance must be adjusted to in corporate the effects of all of the adjusting entries.
Errors are easily made that prevent the trial balance from balancing.
After the adjusting entries have been posted an adjusted trial balance can be made to test the equality of total debit and total credit balance of all ledger accounts.
In brief, the trial balance proves only one aspect of the ledger, and that is the equality of debits and credits.
Account balance trial balance preview before Posting.
Many out-of-balance conditions can be detected by computing the difference between total debits and total credits on the trial balance.
This proof of equality of debit and credit balances is called a trial balance.
