Question

Select the most appropriate alternatives from those given below and rewrite the sentence :

________ is prepared from the balances in ledger accounts.
a) List
b) Journal
c) Book
d) Trial balance

Answer 1

Trial balance is prepared from the balances in ledger accounts.

Explanation:
Trial Balance is a statement showing the summary of debit and credit balances of all ledger accounts, as it is prepared from the balances of all the ledger accounts. It is prepared to check the arithmetical accuracy of the accounts. The debit balances are recorded in the debit column and the credit balances in the credit column.