What is The Purpose of An Extended Trial Balance

The main or primary purpose of Extended Trial Balance is to show the lists of Ledger’s Accounts Balances after Adjustments that will go to the Financial Statements whether it is an Income Statement or Balance Sheet at the end of the accounting period.

We get the information of unadjusted accounts’s balances and adjusted account’s balances at a glance.

We also know the list of accounts go to the Income Statement or Balance Sheet and the types of adjustments made on these Types of Accounts.

Examples of Such Adjustments include Errors, Accrual & Deferrals, Depreciation, Allowance For Doubtful Debts, Closing Inventory / Closing Stock Adjustments, etc.