Explain the term “Trial Balance” and its needs for an organization.
Ans. A Trial Balance is a statement of summarization of the all the involved ledgers accounts at the end of the particular period or a date in other words the total balances of an individual accounts are written in a summarized statement which is called the Trial Balance.
An organization needs a Trial Balance in order to prepare its Final Financial statement which is Balance Sheets, Profit & Loss Account and a Trading Account etc.