1.

What is Trail balance?

Answer»

Multiple entries in various accounts will make a ledger.  Taking all the ledger balances and presenting them in a single worksheet as on a particular date is Trial Balance. To understand a trial balance, we must first understand the following-

  • Double entry system – Recording two entries for a single transaction that is equal and opposite in nature
  • Journal – All transactions recorded in double entry system of bookkeeping
  • Ledger – Summary of all journals of a similar nature.


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