A Trial Balance facilitates smooth preparation of ______________.

final accounts

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cash book

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subsidiary books

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journal

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Solution

The correct option is C final accounts
Final accounts comprises of all the closing balances of all the ledgers posted from the journal entries passed.
Trial balance is a statement showing arithmetic accuracy and summarised balances.
These accounts form the base for finalization of the year ending figures and helps in preparation of final accounts to determine the profitability and the financial position of the entity.

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Similar questions

State true or false:

1) A Trial balance is an account.
2) A Trial balance is helpful for preparation of final accounts.
3) A Trial balance is most important document.
4) A Trial balance may be prepared on any date.
5) In Trial balance opening stock is recorded in credit balance column.
6) Both sides total of an account are taken in Gross Trial Balance.
7) Purchase account always shows debit balance.
8) A Trial balance is a List of Ledger balances.
9) A Trial balance does not ensure accounting accuracy.
10) A Trial balance shows only arithmetical accuracy.

The preparation of a Trial Balance helps in :

Q. Preparation of a trial balance helps in locating __________.

Q. Prepare a Trial Balance from the following items:


	₹		₹
Capital	24,000	Building	12,000
Opening Stock	8,500	Returns Inward	1,900
Furniture	2,600	Returns Outward	350
Purchases	8,950	Trade Expenses	1,000
Cash	7,300	Discount Received	970
Carriage	300	Salary	3,000
Sales	22,500	Office Rent	2,270

Q. A trial balance is prepared to ________.

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