What are the objectives of Trial Balance?

Objectives of Trial Balance

• To Ascertain the Arithmetical Accuracy of Ledger Accounts: The trial Balance enables one to establish whether posting and other accounting processes have been carried out without committing arithmetical errors

• To Help Prepare The Final Accounts: Financial statements are normally prepared on the basis of the Trial Balances. Otherwise, the work may be difficult, if not impossible. Preparation of financial statements, therefore, is the second objective of preparing a Trial Balance.
• Summary of Each Account: The trial balance offers a summary of the Ledger. The ledger may have to be referred to only when more detail is required in respect of an account.
• To Help in Locating Errors: The Trial Balance helps in locating errors in books-keeping work. It should, however, be noted that it does not disclose all the errors in book-keeping work but only the arithmetical inaccuracies.