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Trail Balance preparation

Why do we prepare Trail Balance?
Asked by: Interview Candidate | Asked on: Nov 10th, 2007
Showing Answers 1 - 3 of 3 Answers

Trial balance will show Net balances of all accounts irrespective of nature of account such as Assets, Liabilities, Income and Expenses. Once the Credit and Debit balances of a Trial Balance will tally then onle we can proceed for Profit & Loss A/c and Balance Sheet

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Answered On : Oct 8th, 2008

View all answers by sathyapidugu

In Accounts Perspective: Trail balance will be prepared to know the Arthamatic Accuracy of all the accounts with in a given period normally yearly basis.This statment consist of heads belongs to REAL ACCOUNT AND PERSONAL ACCOUNT Trail balance will not cosists the Nominal account headsIt is the gateway to Final accounts i.e Trading,Profit & Loss account and Balance Sheet.

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Answered On : Mar 18th, 2010

View all answers by steadyshot23

Trial Balance is prepared in order to see if Debits=Credits. If Debits=Credits then you proceed to prepare an income statement. Then prepare a balance sheet. Plain and simple.

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