Glossary · Financial statements
Trial balance (TB)
A trial balance is a report that lists every account in the general ledger with its debit or credit balance on a given date. If the books are kept in double entry, total debits equal total credits. Accountants use it as the starting point for adjusting entries and for preparing the financial statements.
Glossary / Trial balance
How it works
The trial balance is a check, not a statement for outsiders. A balanced trial balance proves the debits and credits match, not that every entry is right. An expense posted to the wrong account still balances.
At year-end, accountants often work from an adjusted trial balance: the unadjusted balances, a column of adjusting entries such as depreciation and accruals, and the adjusted balances that feed the tax return and the statements. Many accountants ask clients for a trial balance before anything else.
If a trial balance does not balance in software that enforces double entry, the file itself may be damaged, so restore a backup or run the program's data check before doing anything else.
Worked example: A small trial balance
A small business runs its trial balance as of December 31. It shows six accounts with balances.
Debits total $58,000 and credits total $58,000, so the books are in balance and ready for the accountant's review.
| Account | Debit | Credit |
|---|---|---|
| Bank | $14,000 | |
| Accounts receivable | $6,000 | |
| Accounts payable | $4,000 | |
| Owner's equity | $10,000 | |
| Sales income | $44,000 | |
| Expenses | $38,000 | |
| Totals | $58,000 | $58,000 |
In AcboBooks
The Trial Balance report lists every account with a balance as of a date. The Adjusted Trial Balance adds Unadjusted, Adjustments and Adjusted columns, where the adjustments are journal entries flagged as accountant adjustments. Both export to Excel.
Related terms
- General ledger (GL)
- Double-entry bookkeeping
- Debits and credits (Dr / Cr)
- Closing the books
- Balance sheet
- Journal entry (JE)
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Updated October 25, 2026. General information, not tax, legal or accounting advice. Rules and rates change; check with the IRS, the CRA, your state or province, or your accountant.
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