TRIAL BALANCE (possible exam question Evaluate the effectiveness of trial balance)
A trial balance is a list of all the accounts which have an outstanding balance. It is used to check the arithmetical accuracy of the account. If it balances it is probably correct. If it does not, then errors have been made.
The trial balance will find:
Ø Incorrect addition of an account or the trial balance
Ø Make two debit or two credit
Ø Transcription error- copy the figure down wrong into the trial balance