Glossary Accounting
Trial balance
Definition
A trial balance lists every ledger balance on a date, debits in one column and credits in the other; the two totals must match.
Example
At 31 March a Surat trader's trial balance totals ₹74,60,000 on both sides. But a supplier, Desai Yarn, shows a ₹45,000 debit balance, which turns out to be an advance never adjusted against its bill. Matching totals did not catch it; reading the balances did.
Trial balance in TallyPrime and in Cashflow OS
Where to find itIn TallyPrime
TallyPrime's Trial Balance shows group totals that drill down to ledgers and vouchers, for any period. Because TallyPrime posts both sides of each voucher, a difference usually comes from opening balances.
On your phoneIn Cashflow OS
Cashflow OS shows the Trial Balance from synced Tally data for any financial year or a custom date range, with Excel and PDF export.
See how it works
Common misunderstandings
- Watch outBelieving that matching totals prove the books are right; wrong-party postings still balance.
- Watch outIgnoring a difference in opening balances instead of tracing it at the start of the year.
What it is for
Because every entry has an equal debit and credit, the two totals should always agree. The trial balance is the bridge between day-to-day entries and the final accounts: the Profit and Loss account and Balance Sheet are built from it. Accountants also read it to spot balances that look wrong, such as a debit balance on a supplier or a negative cash balance.
Example
| Ledger or group | Debit | Credit |
|---|---|---|
| Capital | ₹10,00,000 | |
| Sundry creditors | ₹6,40,000 | |
| Sales | ₹42,00,000 | |
| Purchases | ₹34,50,000 | |
| Expenses | ₹3,90,000 | |
| Sundry debtors | ₹12,80,000 | |
| Stock, bank and cash | ₹7,20,000 | |
| Total | ₹58,40,000 | ₹58,40,000 |
The totals match. But a matching trial balance does not prove the books are right: a payment posted to the wrong party, or a bill missed altogether, still balances. That is why accountants read the balances, not just the totals, and why it pays to look at the Day Book regularly so wrong postings are caught early. More in trial balance explained.
What to look for
- Suspense or difference in opening balances: should be nil.
- Debtors with credit balances and creditors with debit balances: advances or wrong postings.
- Cash in hand that is negative or far higher than the cash box.
- Expense heads much higher or lower than last year.
- Bank balances that do not match the bank statement after reconciliation.
Where it shows up in TallyPrime
TallyPrime's Trial Balance report shows group totals by default; you can open any group to see its ledgers and any ledger to see its vouchers, and compare periods. Because TallyPrime posts both sides of each voucher automatically, the totals almost always agree; a difference usually comes from opening balances. Cashflow OS shows the Trial Balance from synced Tally data for any financial year or a custom date range, with Excel and PDF export.
Related terms
LedgerDay BookVoucherWorking capitalGross marginAll terms A–Z
Questions about Trial balance
Why would a trial balance not tally?
Is a trial balance a financial statement?
How often should I look at it?
What is the difference between a trial balance and a balance sheet?
Why does my supplier show a debit balance?
This page is general information for Indian businesses, not tax, legal or financial advice. Rules and rates change — check the official portals or your CA before acting.
