A trial balance is a listing of all accounts (in this order: asset, liability, equity, revenue, expense) with the ending account balance. It is called a trial balance because the information on the form must balance.
Features:
1. A trial balance can be prepared anytime during the accounting period.
2. It is prepared to check the arithmetical accuracy of posting of entries from journal to ledger, in other words it is an instrument for carrying out the job of checking and testing.
3. It is not a part of the double entry system of book keeping but only for checking the accuracy of posting. However, it does not reveal all errors.
4. It is prepared on a specific date.
5. It is not a part of double entry and not an account.
6. It is a statement of balance of all accounts.
7. Total of the debit and credit columns of the trial balance must tally.
8. If the debit and credit columns are equal it is presumed that accounts are arithmetically accurate.
9. Difference in the debit and credit columns indicate that some mistakes have been committed
10. Tallying of trial balance is not a conclusive proof of accuracy of books of accounts; it serves to prove only the arithmetical accuracy of books.
