What it means
In double-entry books every debit has an equal credit, so if all ledgers are listed with their balances, the two columns must agree. Accountants run a trial balance before preparing the profit and loss account and the balance sheet, and auditors start from it.
Example
A simplified trial balance for Kaveri Agencies on 31 Mar 2027:
| Account | Debit | Credit |
|---|---|---|
| Stock in hand | ₹18,40,000 | |
| Debtors | ₹9,62,000 | |
| Bank | ₹4,15,000 | |
| Purchases | ₹1,12,30,000 | |
| Expenses | ₹14,80,000 | |
| Sales | ₹1,36,90,000 | |
| Creditors | ₹7,12,000 | |
| Capital | ₹15,25,000 | |
| Total | ₹1,59,27,000 | ₹1,59,27,000 |
Common mistakes
- Taking a balanced trial balance as proof the books are right. It cannot catch an entry left out, an entry posted to the wrong account on the correct side, or two errors that cancel out.
- Using a suspense account to force a balance and never clearing it.
- Running it before closing stock and year-end entries are posted.
In MyRecords
The Trial balance page lists every account for a period with opening, debit, credit and closing, and its Difference figure must read Balanced. Click an account to see its ledger. Print for audit adds signature lines, and Monthly to my CA e-mails it to your accountant as a PDF.