What are the Features of Trail Balance - Basic Accounting

In our Basic Accounting Training Course today we will discussed about Features of Trail Balance. Let See what are the basic  purpose of Trail balance , why accounting demand Trail balance here is the answer.

Features and Limitation of Trail Balance 

1. Trail Balance is prepared on basis of Accounting Equation
2. Assets = Liabilities + Owners Equity.
3. It serves as a working paper for the accountants
4. It assures the reliability of Accounts.
5. It assure you that all previous record are ok ( Mean main book of accounts General Journal)
6. In limitation we can say it does not assure the accuracy of your Accounts. Like if you omit any entry balance will be ok but transaction is missing.
7. It is the next level of accounting after real books of accounts.
8. In limitation we can say trail balance is not able to detect the error of Dr Vs Credit.
9. Trail Balance can help you to move to the next level after this step
10. It help you to create Balance sheet just copy the balance of all assets and put into balance sheet.

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