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Why do we prepare a trial balance?

Why do we prepare a trial balance?

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Trial Balance is a worksheet used for book keeping where ledgers are put into debit and credit column that are equal in value. Trial balance is prepared at the end of reporting period. Basic purpose of trial balance is to ensure that entries are mathematically correct, trial balance helps the companies to detect methematical errors those may have occured in double entry accounting system. If total of both debit and credit side of trial balance is equal then it is considered that there is no mathematical errors in the ledgers but it does not assure that accounting system of the company is error free. A company's transactions are summed in trial balance and recorded in general ledger.

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