A trial balance is a financial report that lists the balances of all ledger accounts of a business at a specific point in time. Its primary purpose is to ensure that the total debits equal the total credits in the accounting records, which is a fundamental principle of double-entry accounting.
Key Features of a Trial Balance:
Structure: It typically consists of two columns:
Debit Column: Lists all account balances with a debit balance (e.g., assets, expenses).
Credit Column: Lists all account balances with a credit balance (e.g., liabilities, equity, revenue).
Purpose:
To verify the mathematical accuracy of the accounting entries.
To help in the preparation of financial statements, such as the income statement and balance sheet.
Timing: A trial balance is usually prepared at the end of an accounting period, but it can also be generated periodically throughout the year for internal management purposes.
Limitations:
A balanced trial balance does not guarantee that all transactions are recorded correctly or that there are no errors in the accounts.
It does not account for off-balance-sheet items or omissions.
Example:
Account Name Debit ($) Credit ($)
Cash 10,000
Accounts Receivable 5,000
Accounts Payable 3,000
Revenue 12,000
Totals 15,000 15,000
In this example, the total debits equal the total credits, indicating that the accounts are in balance.
English 
Arabic