?DEFINE TRIAL BALANCE
Every business concern prepares Final Accounts at the end of the year to ascertain the result of the activities of the whole year. To ensure correct result, the concern must be free from doubt that the books of accounts have been correctly recorded throughout the year. Trial balance is prepared to test the arithmetical accuracy of the books of accounts.
Trial balance serves two main purposes:
1. To check the equality of debits and credits
2. To provide information for use in preparing Final Accounts
Thus in the light of above discussion a Trial Balance may be defined as "an information or accounting schedule or statement that lists the ledger account balances at a point in time and compares the total of debit balances with the total of credit balances".