What is Adjusting Trial Balance - Definition - Meaning - Format Example
Previously, we studied about Trial Balance and how to rectify it, now we are in a position to study about Adjusted Trial Balance. An adjusting trial balance is prepared at the end of accounting period to show adjusted balance of Different Types of Accounts , especially for all Deferrals and Accruals in order update the balances and according to Matching Principle Gaap . It is prepared at the time of recording Adjusting Entries at the end of accounting period. The main purpose of adjusted trial balance is to adjust the closing balances of accounts in order to verify and rectify any errors, mistakes made or frauds concealed in the books of accounts so that true and fair view of financial statements ( Income Statement , Statement of Retained Earnings and Balance Sheet). Adjusted Trial Balance Format Example You May Also Be Interested In, " Post Closing Trial Balance " In adjusted trial balance, one colum n is for types of a...