GROUPING OF VARIOUS ACCOUNTING TRANSACTIONS

There are eleven different ledger accounts involved out of the journal entries which
already transacted are finally balanced. The balanced ledger accounts should be prepared
as a summary list of their balances and names. The total of both balances are equivalent
to each other. The major reason for the equivalent balances on both sides is only due to
posting of entries to the tune of "Double Entry Accounting Concept (Or) Duality Concept".
This is the concept which equates the total amount of resources raised with the total
amount of applications of the enterprise.
Purposes of preparing the Trial Balance:
l To prepare a statement of disclosure of final accounting balances of various ledger
accounts on a particular date
l To prepare a statement of cross checking device of accounting while in the
process of posting of entries which mainly on the basis of Double entry accounting
principle. It facilitates the accountant to have systematic posting of entries
l It facilitates the enterprise for the preparation of Trading & Profit and Loss Accounts
for the year ended…………….. and the Balance sheet as on dated ………………..
l It provides the birds' eye view of accounting balances of various ledger accounts
during the specified period.

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