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What is Trial Balance Preparation Methods about?

A trial balance is a list of all general ledger accounts that shows the debit and credit balances of each account. It serves to check that total debits equal total credits, proving the accuracy of financial records. If debits do not equal credits, an error exists in the ledger accounts. A trial balance also helps prepare financial statements and locate accounting errors. There are three methods for preparing a trial balance: total method, balance method, and compound method.

Author

Sushank Kumar 7278

Language

EN