{"id":271501,"date":"2023-12-06T12:49:17","date_gmt":"2023-12-06T00:49:17","guid":{"rendered":"https:\/\/www.reckon.com\/nz\/?page_id=271501"},"modified":"2025-01-29T11:40:49","modified_gmt":"2025-01-28T23:40:49","slug":"trial-balance","status":"publish","type":"glo","link":"https:\/\/www.reckon.com\/nz\/glossary\/trial-balance\/","title":{"rendered":"What is a trial balance?"},"content":{"rendered":"

[et_pb_section fb_built=”1″ custom_padding_last_edited=”off|desktop” _builder_version=”4.27.2″ custom_margin=”0px||0px||false|false” custom_padding=”0px||0px||false|false” custom_padding_phone=”0px||||false|false” locked=”off” global_colors_info=”{}”][et_pb_row column_structure=”1_3,2_3″ _builder_version=”4.27.2″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” width=”100%” custom_margin=”0px||0px||false|false” custom_padding=”0px||0px||false|false” global_colors_info=”{}”][et_pb_column type=”1_3″ module_class=”table-contents” _builder_version=”4.23″ background_color=”#f4f4f4″ custom_padding=”25px||25px||true|false” sticky_position=”top” sticky_limit_bottom=”section” sticky_position_tablet=”top” sticky_position_phone=”none” sticky_position_last_edited=”on|desktop” pac_dcm_carousel_specific_module_num=”0″ border_radii=”on|24px|24px|24px|24px” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.23″ text_font=”||||||||” global_colors_info=”{}” background__hover_enabled=”on|desktop”][\/et_pb_text][\/et_pb_column][et_pb_column type=”2_3″ _builder_version=”4.16″ custom_padding=”|||” pac_dcm_carousel_specific_module_num=”0″ global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”Definition description + related terms” _builder_version=”4.27.4″ header_2_font_size=”32px” hover_enabled=”0″ header_2_font_size_tablet=”30px” header_2_font_size_phone=”26px” header_2_font_size_last_edited=”on|tablet” global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n

Divided into credits and debits, a trial balance is a bookkeeping table detailing the total ledgers in a business. If you have not made a bookkeeping error the trial balance should be mathematically equal in both the credit and debit columns. If both columns are equal, then the trial balance is balanced.<\/p>\n

Purpose of a trial balance<\/h2>\n

A trial balance is a staple of double entry bookkeeping and is usually undertaken periodically, at the end of each reporting period.<\/p>\n

A trial balance helps you to ascertain whether there are mathematical errors in the ledgers. If the trial balance is not equal in both columns, you must drill down to discover the error and fix it.<\/p>\n

A trial balance is usually completed as an internal document to keep track of finances and your accounting and bookkeeping are accurate.<\/p>\n

 <\/p>\n

Trial balance vs. balance sheet<\/h2>\n

[\/et_pb_text][et_pb_image src=”https:\/\/www.reckon.com\/nz\/wp-content\/uploads\/2024\/08\/trial-balance.png” alt=”What is profit?” title_text=”Trial Balance” align=”center” _builder_version=”4.27.0″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_image][et_pb_text admin_label=”Definition description + related terms” _builder_version=”4.27.4″ header_2_font_size=”32px” header_2_font_size_tablet=”30px” header_2_font_size_phone=”26px” header_2_font_size_last_edited=”on|tablet” global_colors_info=”{}”]<\/p>\n

Although similar, the difference between a trial balance and a balance sheet<\/a> comes down to scope and purpose.<\/p>\n

A trial balance is less formal and usually just includes the closing balances of a business\u2019 accounts. Whereas a balance sheet is a formal document, often intended to be released more broadly and will include more detail such as assets, liabilities, and equity.<\/p>\n

See related terms<\/strong>
What is a balance sheet?<\/a>
How to calculate profit margin (with formula)?<\/a>
What does accrued mean?<\/a><\/p>\n

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Divided into credits and debits, a trial balance is a bookkeeping table detailing the total ledgers in a business. If you have not made a bookkeeping error the trial balance should be mathematically equal in both the credit and debit columns. If both columns are equal, then the trial balance is balanced. Purpose of a […]<\/p>\n","protected":false},"author":6,"featured_media":0,"menu_order":0,"template":"","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","inline_featured_image":false,"_lmt_disableupdate":"no","_lmt_disable":"","footnotes":""},"class_list":["post-271501","glo","type-glo","status-publish","hentry"],"yoast_head":"\nWhat Is a Trial Balance? | Accounting Terms | Reckon NZ<\/title>\n<meta name=\"description\" content=\"If your bookkeeping is correct, your trial balance will have equal debit and credit columns. 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