After the preparation of ledgers, the next step is the preparation of ___________.

Trading accounts

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Trial balance

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Profit and loss account

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None of these

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Solution

The correct option is B Trial balance
After posting all financial transactions to the accounting journals and summarizing them in the general ledger, a trial balance is prepared to verify that the debits equal the credits on the chart of accounts. The trial balance is the next step in the accounting cycle.

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Similar questions

Q. After the preparation of ledgers, the next step is the preparation of ______________.

Q. Steps of preparing Final Accounts is -
(a) Trading Account
(b) Profit and Loss Account
(c) Balance Sheet

Q. Which of the following organization will not prepare Trading A/c but prepares Profit & Loss A/c?

Q. While preparing trading and profit and loss a/c _________ is made.

Give one word, term or phrase for the following statement:

1) A List of Debit Balances and Credit balances in the ledger.
2) A Statement prepared to provide the base for preparing the final accounts.
3) A statement is prepared without balancing the ledger account.
4) Mention the side where goodwill A/c is appeared in the Trial Balance.
5) A List of both Ledger balances which is prepared after the closing of ledger Accounts.

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