Sample Answer:

A trial balance is an accounting worksheet in which the balances from all ledgers maintained in the business are compiled under the headings – Debit and Credit. It is prepared at the end of every reporting period.

The objective behind preparing a trial balance is to ensure mathematical correctness of the double entry accounting system being maintained by the company. If the amount received after totaling all debts equals the amount received after totaling all credits, a trial balance is taken to be balanced and it also means that there are no arithmetical errors in the ledgers maintained. A trail balance is also used for preparing final accounts etc.







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