Trail balance

 

After preparing the accounting entries and recording the financial operations in the establishment, the transfer is done to the ledger and the balance of the accounts, and then the trial balance is prepared, where the ledger account balances are transferred to it, and then the inventory adjustments are made at the end of the year to determine the final account balance in the accounting period or cycle Then, financial statements are made

The trial balance consists of two parties, a debit party and a credit party, and the two parties must be equal at the end. There are two types of trial balance, which are the trial balance with balances, meaning the balance of each account, and the audit balance by totals, meaning we take the group of the largest party from each of the ledger accounts.

That is, the trial balance is a statement that contains all the accounts receivable and credit of the ledger, as it aims to verify the accounting balance after making the revised trial balance or the trial balance after adjustments, where adjustments are made for the fixed assets elements through the depreciation provision as well as the current assets through making a cash inventory And customers, receipts and bank account at the end of the year.

And the inventory adjustments of the elements of revenues and expenditures, i.e. the charging of the accounting period with its related revenues and expenses, according to the accrual basis, which provides for the charging of the accounting period with its related revenues and expenditures to determine the outcome of the activity in terms of profit or loss.

In practical reality, with the development of accounting programs, the financial operations of the facility are entered into the program, and the program produces the ledger or account statement, the balance of auditing, debit and credit movements, which is a statement of the balance of each of the ledger accounts.

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