What is Trial Balance?
- Trial Balance
- A Trial Balance is a listing of all general ledger accounts and their closing debit or credit balances at a given date, used to verify that the books are balanced before preparing financial statements.
Purpose of Trial Balance
The trial balance is a preliminary check — if total debits ≠ total credits, there is a posting error. However, a balanced trial balance does not guarantee correct entries (e.g., recording the wrong account with the correct amount still balances). Accountants use it as a starting point for financial statement preparation.
Trial Balance in Indian Accounting
Indian CA firms and company accountants run the trial balance at month-end to verify books before closing entries. ERPNext's Trial Balance report runs in real time, includes a "Show Zero Balance" option for completeness, and can be filtered by Cost Centre for departmental trial balances.
Infonoxe Technologies specialises in ERPNext implementation and custom software for Indian businesses.
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