Objectives of Preparing the Trial Balance.

 The primary objective of preparing the trial balance is to ensure the accuracy and completeness of the accounting records. The trial balance helps in achieving the following objectives:

1. Ensuring the Accuracy of Accounting Records: The trial balance ensures that the total of all debits is equal to the total of all credits. If the trial balance does not balance, it indicates that there is an error in the accounting records that needs to be corrected. This helps to ensure that the accounting records are accurate.

2. Detecting Errors: The trial balance helps in detecting errors in the accounting records. If the trial balance does not balance, it indicates that there is an error in one or more of the accounts. By comparing the balances of the individual accounts with their ledger balances, it is possible to identify and correct errors in the accounting records.

3. Facilitating the Preparation of Financial Statements: The trial balance provides a summary of all the account balances, which can be used to prepare the financial statements. The trial balance ensures that all the account balances have been correctly recorded in the ledger, and that the financial statements will be accurate.

4. Preparing Adjusting Entries: The trial balance provides a starting point for preparing adjusting entries. Adjusting entries are made at the end of the accounting period to update the balances of certain accounts, such as prepaid expenses and accrued revenues or expenses. The trial balance provides a summary of the account balances before adjusting entries are made.

5. Preparing Closing Entries: The trial balance provides a starting point for preparing closing entries. Closing entries are made at the end of the accounting period to close the temporary accounts, such as revenue and expense accounts. The trial balance provides a summary of the account balances before closing entries are made.

In conclusion, the trial balance is prepared to ensure the accuracy and completeness of the accounting records, to detect errors, to facilitate the preparation of financial statements, and to provide a starting point for preparing adjusting and closing entries.