A trial balance that is "in balance" proves:

Question

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A trial balance lists all the accounts and balances in the ledger to check whether the total of debit balances equals the total of credit balances. If the trial balance is "in balance," it proves that the equality of the debits and credits is maintained, which is the fundamental principle of double-entry accounting system. However, it does not ensure that all transactions were properly recorded or all journal entries were properly posted to the ledger; it only confirms that the accounting equation is in balance. The trial balance is the basis for preparing the financial statements, including the income statement, statement of retained earnings and balance sheet.

A Trial Balance That Is "In Balance" Proves