Trial Balance

The trial balance lists every account with its opening balance, the debits and credits posted during the period, and the closing balance. It is the standard check that your books balance.

Reading it

Four figures per account: opening, total debit, total credit, closing. Group accounts roll up their children.

Total debits must equal total credits. If they do not, something has posted an unbalanced entry — an unusual condition, since submitted documents always post balanced pairs.

What to use it for

• Confirming the books balance before closing a period
• Checking opening balances were entered correctly
• Finding the account behind an unexpected balance sheet figure, then drilling into it with the general ledger