Trial balance is prepared from:

**The reasoning** A trial balance is a statement that lists **all the closing balances from every account in the ledger** at a specific date. Think of it as a "roll call" for all your accounts—Assets, Liabilities, Capital, Revenue, and Expenses. Here's the flow: You record transactions in journals → Post them to individual ledger accounts → Extract the balances from these ledger accounts → List them in the trial balance to check if Total Debits = Total Credits. So the **source document** for preparing a trial balance is always the **ledger**, where all accounts live. **Why the wrong options tempt you** - **A (Income statement)**: This is actually *prepared FROM* the trial balance, not the other way around. It's a final statement showing profit/loss. - **C (Cash book)**: This is just ONE book of original entry. The trial balance needs balances from ALL accounts, not just cash. - **D (Bank statement)**: This comes from your bank, used for reconciliation—not for preparing trial balances. **Quick takeaway** Trial balance = Summary of **ledger balances**—it's the checkpoint before you prepare your financial statements.