Trial balance forms part of any company's bookkeeping exercise. This worksheet is a compilation of all ledger balances and further classification into debit and credit accounts. A trial balance is prepared periodically, commonly at the end of each reporting period.
For example, Vareto's utility spend for the month includes different bill categories, each of which amounts to $ 1,000, $ 3,000, $ 2,500, and $ 1,500. The trial balance will therefore reflect a single expense account that will give the total of all these expenses = $ 8,000.