#fra-introduction
A trial balance is a list of all open accounts in the general ledger and their balances.
- For every amount debited, an equal amount must be credited.
- The total of debits and credits for all the T-accounts must be equal.
- A trial balance is prepared to test this. It proves whether or not the ledger is in balance.
- It is usually prepared at the end of a month or accounting period.
Since certain accounts may not be accurately stated, adjusting entries may be required to prepare an adjusted trial balance.
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Flow of Information in an Accounting Systemcount in the ledger.
There is a separate T-account for each item in the ledger. A T-account appears as follows:
3. Trial balance and adjusted trial balance
<span>A trial balance is a list of all open accounts in the general ledger and their balances.
For every amount debited, an equal amount must be credited. The total of debits and credits for all the T-accounts must be equal. A trial balance is prepared to test this. It proves whether or not the ledger is in balance. It is usually prepared at the end of a month or accounting period.
Since certain accounts may not be accurately stated, adjusting entries may be required to prepare an adjusted trial balance.
4. Finance statements
The financial statements can be prepared from the adjusted trial balance.<span><body><html> Summary
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