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Trial Balance

The verification trial balance is an accounting report that aims to verify the equality between the balances of the accounting accounts of a company. It is used to check if the accounting record is correct, identify possible errors and ensure the consistency of financial information.

To prepare a verification balance sheet, it is necessary to have access to the ledger, which records all the company's accounting transactions. The trial balance is usually prepared in table format, with the following columns: ledger account, debit balance and credit balance.

GL accounts are classified into balance sheet accounts and income accounts. The balance sheet accounts represent the company's assets, liabilities and equity, while the income accounts represent the income, expenses and costs.

On the balance sheet, balance sheet accounts are grouped into three categories: assets, liabilities, and equity. Income accounts are grouped into two categories: income and expenses.

To prepare the balance sheet, it is necessary to add the debit balances and the credit balances of each ledger account. If the sum of the debit balances is equal to the sum of the credit balances, it means that the balance sheet is balanced, indicating that the accounting movements are correct.

However, if the sum of the debit balances is different from the sum of the credit balances, it indicates that there is an error in the accounting transactions. In this case, it is necessary to carry out a more detailed analysis to identify and correct the error.

In addition to verifying the equality between the balances of the accounting accounts, the verification trial balance is also used for the preparation of other accounting reports, such as the balance sheet and the income statement for the year.

In summary, the trial balance is a fundamental tool in the accounting of companies, as it allows checking the consistency of financial information and identifying possible errors in accounting transactions. It is an important step for the preparation of other accounting reports and for making managerial decisions.