How To Prepare Trial Balance With Example
A trial balance is important because it acts as a summary of all of our accounts. By looking at our trial balance, we can immediately see our bank balance, our loan balance, our owner’s equity balance. In fact, we can immediately see the balance of every single account in our business. Why Trial Balance is important? Well, as you know, accounting/bookkeeping is all about balancing. The accounting equation needs to balance, every transaction needs to be balanced, our debits and credits need to be balanced and so on....