A trial balance is a bookkeeping worksheet or internal financial report that lists the balances of all general ledger accounts of a company at a specific point in time. It has two columns: one for debit balances and one for credit balances, and the total of both columns must be equal to ensure the mathematical accuracy of the company's bookkeeping system

. The primary purpose of a trial balance is to verify that the total debits equal the total credits in the double-entry accounting system, which helps detect any mathematical errors in the ledger accounts before preparing official financial statements like the profit and loss statement and balance sheet

. However, while it confirms mathematical correctness, it does not guarantee the absence of other types of accounting errors such as misclassification or missing transactions

. Trial balances are typically prepared periodically, often at the end of an accounting period, and serve as a preliminary step in the accounting close process and audits

. There are three types of trial balances:

• Unadjusted trial balance: prepared first to gather initial data and check for obvious errors.
• Adjusted trial balance: prepared after making necessary adjustments to accounts.
• Post-closing trial balance: prepared after closing temporary accounts to ensure readiness for the next accounting period

In summary, a trial balance is a crucial internal report that ensures the ledger's debits and credits are balanced, serving as a foundation for accurate financial reporting and audit processes