Prepare a Trial Balance and The Function

Abstract

In carrying out its business activities, companies must record transactions that occur within the company so that at the end of the period they can produce a financial report that is used by management for decision making. To be able to produce a financial report each period, the company must run an accounting cycle. A trial balance is made to determine the balance between the debits and credits of a company. Because if there is a deviation from the expected value, the trial balance will help detect the implementation of financial accounting. The definition of a trial balance is also called a trial balance because it is a collection of the balances of each estimate in the general ledger. However, to prepare a balance sheet, you must first determine each estimated balance in your company's general ledger. The general ledger is a book that contains all the accounts (a collection of accounts) in the financial statements. This book also records any changes that occur in each account and at the end of the period.