Adjusted Trial Balance
What is an Adjusted Trial Balance?
An adjusted trial balance is a trial balance prepared after all period-end adjustments are made.
How it Works
In the days of manual accounting systems, you needed to make several period-end checks.
First, you checked the control accounts.
Next, you prepared a trial balance.
This made sure you hadn’t made a mistake while recording the other side of a transaction.
After this, you made any necessary period end adjustments.
While doing this, it was easy to make a mistake.
To check for mistakes, you prepared an adjusted trial balance.
An adjusted trial balance is the same as a regular trial balance, except it includes the balances of adjusted accounts.