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Bookkeeping › Trial Balance

What is the purpose of a trial balance?

Beginner

Answer

Its purposes are: to check the arithmetical accuracy of the double-entry bookkeeping (equal debits and credits), to summarize all ledger balances in one place, and to provide the basis for preparing the income statement and balance sheet. It doesn't prove the books are entirely error-free, only that they balance.
Real-world example The trial balance is drawn up before the financial statements to confirm the ledger balances add up.

Common follow-ups: Does a balanced TB mean no errors? | What statements are built from it?