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Summary: The trial
balance is the starting point for all financial statement
preparation. The trial balance gives you a side by side look at all
of your debit and credit balances in all of your general ledger
accounts. The total of the debits and total of the credits should
cancel each other out for a total balance of zero. If your debits
and credits are do not total to zero on your trial balance then
your trial balance is out of balance and the discrepancy must be
investigated; which is much easier at the trial balance level as
opposed to the financial statement level. Also a trial balance is a
great document for mapping which accounts to combine on the
financial statement level; for instance, trade receivables,
employee receivables, and other receivables may be presented on the
face of the balance sheet as one line item called "Receivables."
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