A list of all debit and credit balances from the ledger accounts are made in the
A list of all debit and credit balances from the ledger accounts are made in the
Explanation
A trial balance is a list of all debit and credit balances extracted from the ledger accounts at a particular date. It is prepared to check the arithmetic accuracy of the double-entry bookkeeping system.
The trial balance has two columns: one for debit balances and one for credit balances. If the books have been kept correctly, the total of all debit balances should equal the total of all credit balances.
The trial balance is not a financial statement but a working document. It is used as a starting point for preparing the final accounts (trading account, profit and loss account, and balance sheet).
A balance sheet shows assets, liabilities, and capital at a specific date. The cash book records cash and bank transactions. The profit and loss account shows income and expenses. None of these are simply lists of ledger balances.