All 25 Trial Balance questions
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What is a trial balance? What is the purpose of a trial balance? Which balances go on the debit side and which on the credit side of the trial balance? What is a suspense account and when is it opened? When is a trial balance prepared? What is a balance brought down and carried down? How do you balance a ledger account? Where do drawings appear in the trial balance and financial statements? What is the total of the trial balance meant to demonstrate? What comes after the trial balance in the accounting cycle?
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Bookkeeping › Trial Balance

If a trial balance balances, does it mean the accounts are correct?

Beginner

Answer

No. A balanced trial balance only proves that total debits equal total credits (arithmetical accuracy). It does not detect errors that affect both sides equally—omissions, wrong-account postings, errors of principle, reversals, or compensating errors—so the accounts can still contain material mistakes despite balancing.
Real-world example Even with a balancing trial balance, a purchase wrongly recorded as an asset (error of principle) remains undetected.

Common follow-ups: What does a balanced TB actually prove? | Give an undetected error example.

Correcting Errors Control Accounts Trial Balance
All 25 Trial Balance questions