Friday 29 May 2020

Trial Balance Report in oracle Cloud

What is a Trial Balance Report in oracle Cloud

In this post let us understand what is trial balance report in oracle cloud and what is the importance trial balance report in oracle cloud as well.

What is Trial Balance report in oracle cloud

Trail balance report is list of all general ledger accounts with their balances for any point of time. This list contains all the accounts with their all credit and debit entries. The debit balances will be presented under debit column and the credit balance will be presented under credit column.

What is the Importance of Trial balance report in oracle cloud

Importance of trail balance report

Trial balance report is heart of any business. It is most useful and important when you perform any adjustments. You will be interested to see the trail balance before and after the adjustment.

Let’s say in some case the trial balance did not "balance" then it signal’s an error somewhere between the journal and the trial balance.

Let’s understand Importance of Trial balance report in oracle with an example:

Let’s say you and an expense account 001 and Liability account 002. Let say you have purchase some goods form XYZ and you need to pay 500 USD to supplier then the account entries will be shown below.

What is the Importance of trial balance report

Now whenever you run your trial balance report in general ledger it will appear like this.

What is the Importance of trial balance report

Importance of trial balance report in case of adjustment

Let’s say you have made some adjustment in that case you will be interested to see the trial balance.

Suppose in above case you have received the good’s but those seems to be defective goods and you have returned it. In that case you have reversed the entries and you will be interested to see the trail balance.