What is the difference between a trial balance and a general ledger?

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by montana , in category: Taxation and Accounting , 9 months ago

What is the difference between a trial balance and a general ledger?

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1 answer

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by olen , 9 months ago

@montana 

A trial balance is a statement that lists all the general ledger accounts and their respective balances at a specific point in time. It is usually prepared at the end of an accounting period (usually monthly, quarterly, or annually) to ensure that the debits and credits in the general ledger are equal and balanced. The trial balance serves as a preliminary check to identify any errors or discrepancies in the recording of transactions.


On the other hand, a general ledger is the central repository of all financial transactions of a company. It is a comprehensive record that contains individual accounts for assets, liabilities, equity, revenues, and expenses. Each transaction is recorded in the respective accounts with its corresponding debits and credits.


In summary, the trial balance is a report that shows the balances of all general ledger accounts at a specific point in time, while the general ledger is the ledger that contains all the individual accounts and their transaction details. The trial balance is a tool to ensure the accuracy of the general ledger by verifying if the total debits equal the total credits.