Objectives of preparing a trial balance are as follows:
i. Ascertain the arithmetical accuracy of ledger accounts: The trial balance helps to ascertain whether all the debits and credits are properly recorded in the ledger. If the debit and the credit balances are equal, it is said that the posting and the balancing of the accounts are arithmetically correct. However, the tallying of the trial balance cannot be considered as conclusive proof of the accuracy of the books since some errors remain sometimes.
ii. Helps in identifying errors: Trial balance helps in identifying the errors in bookkeeping work. The error may occur at any one of the stages of an accounting process such as totalling of the subsidiary books, posting of journal entries in the ledger, calculating account balances, carrying account balances to the trial balance and totalling the trial balance columns.
iii. Assists in the preparation of the financial statements: A trial balance is a statement with the record of debit and credit balances of all ledger accounts which helps in the preparation of the financial statements. Hence, it is considered as a connecting link between the accounting records and the preparation of financial statements. Trial balance is useful for further processing.