What Is a Trial Balance?

Definition, a worked example, and what it can and cannot prove.

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Quick answerA trial balance is a list of all ledger account balances at a point in time, with debit balances in one column and credit balances in the other. If the books are arithmetically correct, the two totals are equal.
PurposeCheck that total debits equal total credits
Prepared fromThe ledger
TopicFinancial accounting · Bookkeeping

Trial balance in plain English

After you post transactions to the ledger, you add up each account and list the balances. Because every transaction has equal debits and credits, the two columns must match. The trial balance is a quick check before you prepare the financial statements.

Worked example

AccountDebitCredit
Cash5,000
Equipment4,000
Bank loan3,000
Capital6,000
Total9,0009,000

Both columns total 9,000, so the trial balance agrees.

Common mistakes
  • Assuming a balanced trial balance means there are no errors. It will not reveal an omitted transaction, a wrong account, or errors that cancel each other out.
  • Putting a balance in the wrong column.

Frequently asked questions

What if a trial balance does not balance?

Recheck the addition, look for a balance in the wrong column or a one-sided entry, and, if the difference cannot be found yet, hold it in a suspense account.

Is a trial balance the same as a balance sheet?

No. A trial balance lists all ledger balances to test the arithmetic. A balance sheet is a financial statement showing assets, liabilities and equity.

Which errors does a trial balance not detect?

Errors of omission, commission, principle, compensating errors and errors of original entry.

Keep learning

This page is for general learning. Accounting rules vary by country and standard.