What is difference between trail balance and adjusted trail balance?

The major differences between trail balance and adjusted trail balance are as follows −

Trail balance

  • Ledger account balance complied without any period-end adjustments.

  • It is prepared first.

  • It is account balances.

  • To check the arithmetical accuracy of ledger.

  • Checkbooks of accounts are balanced.

  • It is less accurate.

  • Only one version prepared.

  • It is prepared in columnar format.

Adjusted trail balance

  • It is compiled after necessary adjustments are made at the close of the accounting period.

  • It is prepared after the unadjusted trail balance is prepared.

  • It includes necessary adjustments.

  • To check the accounting accuracy of the books of accounts.

  • Adjustments are made according to accounting standards and principles.

  • It is more accurate.

  • It can have multiple versions.

  • It has a columnar format with additional columns for adjustments.

Updated on: 24-Jul-2020


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