The Trial Balance

Abstract

The principle of the double entry system states that every debit entry should have a corresponding credit entry. Two separate accounts are involved in every transaction, one account recording the debit entry, the other account recording the credit entry. At the end of each month, it is normal procedure for the accounts to be totalled and the ‘balance’ remaining on each account to be ascertained. All items recorded in the accounts on the debit side should equal in total all the items recorded on the credit side of the books; this principle is the basis for the structure and preparation of a trial balance.