A trial balance is prepared to ensure that the total debits equal the total credits in the ledger accounts, confirming the accuracy of the bookkeeping.
Questions & Step-by-step Solutions
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Q
Q: What is the primary purpose of a trial balance?
Solution: A trial balance is prepared to ensure that the total debits equal the total credits in the ledger accounts, confirming the accuracy of the bookkeeping.
Steps: 6
Step 1: Understand that a trial balance is a list of all the accounts in the ledger.
Step 2: Know that each account has a balance that can be either a debit or a credit.
Step 3: Add up all the debit balances from the accounts.
Step 4: Add up all the credit balances from the accounts.
Step 5: Compare the total debits to the total credits.
Step 6: If the total debits equal the total credits, it means the bookkeeping is likely accurate.
