Should Trial Balance Match Balance Sheet?
Yes, Trail Bala nce s hould match with Bala nce S heet as b oth are the esse ntial steps of accounting cycle. One is connected wit h a not her if you miss a ny steps in b etwee n, your financial statements did not s how true a nd fair of financial information to users of financial statements. Also, Study, “ What Happens If You Miss A Step In Accounting Cycle ” Actually, all t he accou nts recorded in journal are finally transferred to concerned ledgers’ accounts and t he n to trial b ala nce (w h ic h is also a ledger) and t h en to financial statements including income statement, b ala nce s heet, statement of retained earnings and cash flows statement. A ny mistake, error or fraud (if not detected or corrected earlier) in a b usi ness transaction is carried forward or transferred to all t he fi nancial statements connected wit h each other duri ng an accounting cycle. However, there are possibilities that a trial balance is agreed with balance s heet, b ut still the...