We understand what is a trial balance. But what then is an Adjusted Trial Balance?
An adjusted trial balance is a trial balance taken from the general ledger accounts after ADJUSTING JOURNAL ENTRIES but before CLOSING ENTRIES have been posted.
Adjusting journal entry is the record made of an accounting transaction giving effect to the correction of an error, an accrual, a write off, a provision for bad debts or depreciation,etc
It is important to understand what is an adjusted trial balance because this is a frequently asked bookkeeping topics whereby examiners will always give the candidates the initial trial balance and them items on adjusting journal entry to prepare the adjusted trial balance