Guides · Bookkeeping
Trial balance basics
A trial balance is a simple arithmetic check on the books: list every account's balance in two columns — debits and credits — and see whether the two totals agree. If they do, the books at least add up.
What a trial balance does
A trial balance pulls the closing balance of every ledger account into two columns and totals them. Under double-entry, every debit has a matching credit, so the totals should be equal. A trial balance is where you confirm they are.
It is usually the first step in closing a period, before financial statements are drawn up.
What it does and does not prove
A matching trial balance proves the books are arithmetically consistent — the debits equal the credits. It does not prove they are correct: a transaction posted to the wrong account, or missed entirely, can still leave the totals matching.
So a trial balance is a necessary check, not a complete one. It catches arithmetic slips, not every error of judgement.
How Lekha keeps balances consistent
Lekha keeps the running position on both sides of the ledger from the source documents, so the balances that a trial balance would draw on come from one consistent record.
Lekha records what your documents say and tracks the money on both sides — what you owe and what you are owed. It records and tracks; it does not replace your accountant.
Questions
- What is a trial balance?
- A list of every ledger account's balance in two columns, debits and credits, totalled to check that the two sides agree.
- What does a matching trial balance prove?
- That the books are arithmetically consistent — debits equal credits. It does not prove every entry is correct.
- Can a trial balance match and still be wrong?
- Yes. A transaction posted to the wrong account, or omitted, can still leave the totals matching, so a trial balance is a check, not a guarantee.