A columnar accounting form used to summarize the general ledger information needed to prepare financial statement
Work sheet
The columnar accounting form that is used to summarize the general ledger information needed to prepare financial statements is called a Trial Balance.
A Trial Balance is a report that lists all of the general ledger accounts and their balances at a specific point in time. Its purpose is to ensure that the total debit balances equal the total credit balances in the general ledger.
The Trial Balance is typically prepared at the end of an accounting period, such as month-end or year-end, to help verify the accuracy of the financial statements. It is also used to identify any errors or omissions that may need to be corrected before the financial statements are prepared.
The columns on a Trial Balance typically include the account name, account number, debit balance, and credit balance. The account name and number are used to identify each account, while the debit and credit columns show the balance for each account.
If the total debits equal the total credits on the Trial Balance, it indicates that the accounting records are accurate and in balance. However, if there is a difference, it may indicate that there are errors in the accounting records that need to be corrected before the financial statements can be prepared.
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