The profit and loss statement and balance sheet and other financial reports can then be produced using the ledger accounts listed on the trial balance.
Individual transactions are posted both to the controlling account and the corresponding subsidiary ledger, and the totals for both are compared when preparing a trial balance to ensure accuracy.
These non-cash expenses are recorded in the accounting books "after" a trial balance is calculated to ensure that cash transactions have been recorded accurately.
The purpose of the trial balance is, at a preliminary stage of the financial statement preparation process, to ensure the equality of the total debits and credits.
