The Trial Balance is usually prepared just before the preparation of final accounts in order to check the arithmetical accuracy of posting into ledger. However, to demonstrate the mechanics of its preparation and to impress upon you the ability of the Trial Balance in providing test of the arithmetical accuracy, an attempt is made here to prepare the Trial Balance.

Since, under the double entry system, every debit has equal and corresponding credit, the total of debits given to different accounts must equal the total of credits given to different accounts. Continuing the same logic, since the balance on an account represents the net effect of various debits and credits posted to that account, the total of debit balances on different accounts must be equal to the total of credit balances on different accounts. Thus the two totals i.e., the total of debit balances and the total of credit balances should tally thus upholding the debit-credit equality. If however, the two totals do not tally, it would simply mean that there are certain errors in posting.