Trial Balance - What is the Trial Balance?
Definition: A trial balance is a list of all the balances contained against each Nominal, as they are sometimes referred to or General ledger account numbers. These consist of both Balance sheet and Profit and Loss accounts.
The trial balance will consist of four columns:
- The nominal or general ledger account number
- The description of that account number
- A debit balance column
- The credit balance column
Both the debit balance column and the credit balance column should have the same totals to agree - one negative and one a positive - giving a net balance of zero.
The trial balance is part of the financial reports based on double entry bookkeeping, as in accounting for every debit there is a credit, opposite and equal for your accounts to balance.