Trial Balance
A trial balance lists all accounts in a company’s general ledger and their balances at a specific time. Its purpose is to ensure total debits equal total credits, indicating balanced books.
To prepare a trial balance, a company first lists all its accounts and their balances on a trial balance sheet. Accountants typically group the accounts into categories such as assets, liabilities, and equity.
The balances for each account are either debit balances or credit balances, depending on the nature of the account.
Of the accounts that have been listed and their balances recorded, the company totals the debits and credits separately.
If the total debits equal the total credits, the trial balance is “in balance.” If they do not equal, it is “out of balance,” indicating potential errors in the financial records.
Accountants typically prepare a trial balance at the end of an accounting period, such as a month or a year. They use it as a starting point for preparing the company’s financial statements. It is an important tool for ensuring the accuracy and completeness of a company’s financial records.
How to retrieve Trial Balance on Tally
To retrieve the Trial Balance on Tally, first go to the Gateway of Tally and select the “Display” option from the menu. This will open the “Display” menu, where you can access various reports and information about your accounts.
Next, select the “Trial Balance” option from the “Display” menu. This will open the Trial Balance report, which will show a summary of all the ledger accounts in your Tally software, along with their opening and closing balances.
You can use the Trial Balance report to see your business’s overall financial position and check for errors in your accounts. Additionally, customize the report in the “Trial Balance” menu by selecting a specific date range or ledger.