Question

_________ helps in preparation of final accounts.

• A. Journal
• B. Ledger
• C. Trial Balance
• D. None

Answer 1

Answer: (C)

Trial Balance

A trial balance is a bookkeeping or accounting report that lists the balances in each of an organization's general ledger accounts at the year end (Accounts with zero balances will likely be omitted).

The debit balance amounts are listed in a column with the heading "Debit balances" and the credit balance amounts are listed in another column with the heading "Credit balances." The total of each of these two columns should be identical.

With the help of trial balance final accounts i.e., Trading A/c, Profit & loss A/c and Balance Sheet is prepared.