Features of trial balance
Following are the features of trial balance:
· Trial balance contains the balances of all ledger accounts.
· It is prepared on a specific date. That is why, the word, “as on…” is used at the top.
· When double entry system is followed, the totals of the debit and the credit columns of the trial balance must be equal. Thus, trial balance helps to check the arithmetical accuracy of entries made in the books of accounts.
· If there is a difference between the totals of debit column and credit column of the trial balance, it is an indication of errors being committed somewhere.
· If both the debit column and the credit column of the trial balance have the same total, it does not mean that there is no mistake in accounting, since some errors are not disclosed by the trial balance.