What is the test balance?

Test balance is an accounting list that shows the initial and end balances for all accounts contained in a set of books. This format of worksheets allows you to assess whether the total debit is in balance with the total number of credits generated in the same period. If there is a real continuous balance, total credits and total debit will be the same.

The use of a test balance to qualify for the current state of accounting records is useful in several different ways. One of the most important things that the preparation of the test balance is achieved is quick and easy to identify when debit and credits are not the same. By regularly performing the test balance, this allows you to quickly identify the specific accounting period when the imbalance occurred and repaired it quickly.

For this reason, many companies decide to perform a test balance at least monthly. Depending on the billing cycle used by the worksheet of the worksheet on the test balance on two tŽedny may be useful. In principle, a shorter period is considered, making it easier to identify the origin of imbalance and take care of the situation than becomes the main accounting problem.

6 If this is the case, the error can usually be seen with ease and equality between debit and credits.

The test balance is particularly effective in determining the errors of the double input publication. The difference between credits and debit often will quickly lead to a specific broadcast, which could have been incorrectly entered into two different columns or accounts in the overall series of books.

At the same time, it may be related to the fact that the inequality that has been created by a loan or debit into an incorrect account could be created. In this case, the finding of the error may be a little more time consuming, as this will include reviewing each post for the quoted period and the broadcast confirmation occurred in the correct account and for the correct classification.

The launch of the court balance is usually the forerunner of the preparation of other financial documents, such as revenue and expenditure statements. By making sure that all debit and credits published during this period are correct, it is easier to prepare messages and other documents based on accounting data.