What is a trial balance?

A trial balance is a list of every account in the general ledger with its closing debit or credit balance at a point in time. Total debits must equal total credits. It is the working document from which financial statements and tax computations are built.

What it proves — and what it does not

A balanced trial balance proves only that the double entry is internally consistent. It does not prove the numbers are right. A transaction posted to the wrong account, omitted entirely, entered twice, or recorded at the wrong amount on both sides will leave the trial balance perfectly balanced and completely wrong.

Why you are asked for one

It is the standard handover document. A new accountant, an auditor, a buyer's due diligence team or a lender will ask for the trial balance because it is the most compact complete picture of the ledger. A business that cannot produce one is, in practice, a business without reliable books.

What a good one looks like

• Every control account agreed to its supporting ledger — bank to statement, debtors to the aged listing, stock to the count.
• No unexplained suspense or clearing balances.
• Comparatives against the prior period, so movements can be sense-checked.
• Accruals, prepayments and depreciation posted, rather than left to year end.

Reviewed 18 August 2026 by Ahmed Nabil Selim. UAE tax rates, thresholds and deadlines change — confirm the position for your period before relying on it.