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What is Trial Balance?
Trial Balance:
After posting each and every journal entries within the ledger, a statement termed as trial balance is prepared to check the accuracy of postings within the ledger. This Balance checks the arithmetical accuracy of the entries. This is simply a list of the accounts and their balances at any specified date. This is used to test the equality of balances since at any time the debits and credits must be equal into value. Besides checking the accuracy of postings within the ledger, the trial balance gives the material for formulating financial statements as like Profit and Loss Account and Balance Sheet.
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