How To Prepare a Trial Balance

If you are wondering 'What is a trial balance?', the answer is quite simple in accounting terms. It is a bookkeeping worksheet compiled for internal use where you list all the general ledger accounts along with their closing balances. While computing the trial balance, you input the balances of these ledgers into debit or credit account lists in separate columns. It is necessary that the total amount in each column is equal. To ensure that bookkeeping entries are continuously correct and balanced, businesses typically perform trial balances at the end of each accounting period.