An adjusted trial balance is an internal document which is prepared after all adjusting entries (journal entries recorded at the end of the accounting period to alter the ending balance in various ledger accounts) are made and posted to the ledger. This is the second trial balance prepared in the accounting cycle. The main purpose of the adjusted trial balance is to check that whether the total amount of debit balances in the general ledger equals to the total amount of credit balances or not, and if the total of debit column is not equal to the total of credit column then this would show us that there is an error in the nominal ledger account.
An adjusted trial balance provides enough information for the preparation of many financial statements such as income statement, balance sheet, and statement of changes in equity. An adjustment trial balance will help also provides accurate information while preparing financial statements.