According to double entry system after recording all the transactions in the subsidiary books like journal, sales / Purchase books and posting them into ledger and ascertaining their balances, the statement prepared to ascertain the arithmetic accuracy of accounts on a certain date is called Trial Balance. It is the statement on the basis of which Trading, Profit and Loss Account and Balance sheet are prepared. Here the trial balance is prepared from ledger using "Totals Method". The total of debit and credit side of each account in ledger is place on the appropriate side in the Trial Balance.
Agreed Trial balance is a prima facie evidence of the arithmetical accuracy of the accounting books maintained.
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