Question

Fill in the blanks with correct alternative and rewrite the statements :

A Trial Balance provides the base for preparation of ________.
a) final accounts
b) voucher
c) debit note
d) credit note

Answer 1

Trial balance provides the base for preparation of final accounts.

Explanation:
A Trial Balance provides the basis for the preparation of final accounts, i.e. Trading and Profit & Loss Account and Balance Sheet. It records the balances of all ledger accounts. The final accounts are prepared from the balances shown in the Trial Balance. Thus, Trial Balance provides the base for preparation of final accounts.