The following advantages accrue from a Trial Balance:

1.It is a reasonable proof of the arithmetical accuracy of accounting entries. If the two sides of a Trial Balance tally, it is an indication that the books of account are arithmetically correct. Of course, there may still be some errors left.

2.It contains the balances of all ledger accounts on a particular date. Thus it serves as a summary of the results of all transactions during the period. The position of each account can be judged simply by looking at the Trial Balance. The ledger may be referred only if some further details are required in respect of a particular account.

3.It acts as a basis for preparing the final accounts i.e., Profit & Loss Account and the Balance Sheet. Of course, one can prepare these statements even by taking each balance directly from the ledger. But, that will be too cumbersome.

4.Regular preparation of a trial balance ensures that the accounting staff will work carefully. They will keep the accounts up to date and strive hard to avoid mistakes.

The following can be considered as the limitations of Trial Balance:

1. Trial balance does not disclose all types of errors. Certain types of errors remain undetected even when the Trial Balance tallies. Hence, it is not a conclusive proof of the accuracy of the books of account.
2. A Trial Balance does not provide any additional information. You cannot have any idea about the net result of the trading activity or about the financial position directly from the Trial Balance. Thus, the Trial Balance serves a limited purpose only.

Not withstanding the limitations expressed above, the Trial Balance serves a useful purpose as a preparatory step in the preparation of final accounts.