The BookkeepingCompanion
Log In Sign Up
Bookkeeping Glossary

What is Trial Balance?

Every account and its balance in one list — proving debits equal credits.

The plain-English definition

The trial balance lists every account in the ledger with its current debit or credit balance, and totals both columns. If the totals match, the books are mechanically in balance; if not, an entry error exists and must be found.

It's the pre-flight check run before producing financial statements. A balanced trial balance doesn't prove the books are right — a transaction posted to the wrong account still balances — but an unbalanced one proves something is wrong. Accountants also use it as the working paper for year-end adjustments.

A concrete example

Before closing March, the bookkeeper runs the trial balance: forty accounts, debits $84,310, credits $84,310. Balanced — now the P&L and balance sheet are worth reading. If credits had shown $84,130, the $180 difference (divisible by 9) would hint at transposed digits somewhere.

Related terms

Double-Entry Bookkeeping · General Ledger · Balance Sheet — or browse the full plain-English glossary.

Make it stick

Reading a definition is the easy part — the Daily Challenge (ten questions a day, free, no signup) is how terms like this become reflexes. Going for certification? Start with the free ProAdvisor readiness check.

Create a Free Account