Trial balance

Trial balance is a worksheet wherein all the balances of each ledger are entered in two columns namely debit and credit. Trial balance is prepared in each financial period as summery of closing of previous ledger. The total of debit side should always be equal to the total of credit side which proves the arithmatic accuracy of the ledger entry. So trial balance is also a tool to detect errors occured during dual entry system of ledger. However balanced trial balance does not necessarily guarantee that there is no error. For example transaction could have been removed from ledger account, journal entry if had been posted in wrong ledger, or debit and credit entry could have been transposed, such mistakes may not be shown in trial balance.