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Let's consider both the journal and the general ledger. What is the purpose of recording transactions in both the journal and in the general ledger? It's a good form of checks and balances. An organization's general ledger is only as accurate as its journal. Transactions entered incorrectly in the journal will be transferred to the general ledger incorrectly. So, how do you find errors in journal entries and/or general ledger? This is where the "trial balance" comes in. The trial balance is a test to see if debits equal credits. If they don't equal you know there is a problem and you have to go back through your journal and/or general ledger to see where the errors are. What is the difference between the "account balance" and the "trial balance"?
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