What Is The Purpose Of The Adjusted Trial Balance
The Main Purpose of Adjusted Trial Balance is to update, verify and rectify, if any error, mistake made or fraud concealed in the books of accounts. It is reported to only internal management as it is an internal matter unless if it is required by law to disclose to third party as in case of frauds case, etc. This process helps us to prepare Income Statement, Balance Sheet and Cash Flows Statement accurately and provides us adjusted balances of permanent accounts on balance sheet. It is prepared to ensure us that all the debit accounts balances must be equal to all credit accounts balances in Trial Balance after passing adjusting journal entries. For routine basis, it is also prepared at the time of recording adjusting entries to make adjustments in books of accounts according to Matching Principle Gaap and Accrual Basis of Accounting that is helpful in the preparation of Income Statement / Profit And Loss Account and Balance Sheet at the end of the acco...