What is a trial balance?
The trial balance (TB) is a bookkeeping check. Because [double-entry bookkeeping](/glossary/double-entry-bookkeeping) records equal debits and credits, the totals should always match. If they don't, there is an error somewhere.
Format
A trial balance has three columns: account name, debit balance and credit balance.
Each [general ledger](/glossary/general-ledger) account is listed with its closing balance in the debit or credit column, and both columns are totalled.
Types of trial balance
- Unadjusted: before period-end adjustments.
- Adjusted: after accruals, prepayments, depreciation and other adjustments.
- Post-closing: after income and expense accounts are closed to [retained earnings](/glossary/retained-earnings).
Errors a trial balance won't catch
A balanced TB doesn't mean the books are correct. It won't detect:
- Transactions not recorded at all
- Entries posted to the wrong account (but correct side)
- Equal errors on both sides
- Reversed entries (debit and credit swapped)
- Compensating errors
Using the TB
Accountants use the adjusted trial balance to prepare the [income statement](/glossary/income-statement) and [balance sheet](/glossary/balance-sheet), and to review unusual balances during [month-end close](/glossary/month-end-close).