Question

Preparation of a trial balance helps in locating __________.

• A. Negligence
• B. Clerical errors
• C. Frauds
• D. All of these

Answer 1

The correct option is B Clerical errors

Option B is the correct answer.

Trial Balance is prepared to check and confirm whether posting of all transactions is done in the ledger. If trial balance agrees, it proves that books of account are arithmetically correct. If the total of debit and credit is not matching, it means there are some clerical error.

Hence, preparation of trial balance helps in locating the clerical error.