Purpose of a Trial Balance
The primary role of a Trial Balance is to check the arithmetical accuracy of the double-entry system by ensuring total debits equal total credits.
Exam Alert: Errors the Trial Balance Misses
Even if it balances, errors of Omission, Principle, and Commission may still exist. This is a favorite Cambridge exam question!
How to Prepare a Trial Balance
List all your ledger balances. Assets and Expenses go to the Debit column; Liabilities, Equity, and Revenue go to the Credit column.