Trial Balance
Step 10 of the Accounting Cycle: Verifying the mathematical accuracy of your ledger postings.
Checks Accuracy
The primary purpose of the Trial Balance is to prove that for every debit, there was a corresponding credit. If the totals match, your records are mathematically sound.
(Think like balance scale)
Total DebitIncoming Value
Total CreditOutgoing Value
If the Trial Balance doesn't balance, it signals that an error has been made during the Journalizing or Ledger Posting stages. Finding this mismatch is critical before preparing Financial Statements.