The main purpose of preparing a trial balance is _________.
A
To prepare a summary of all the balance
No worries! We‘ve got your back. Try BYJU‘S free classes today!
B
To compare the debit balance with credit balance
No worries! We‘ve got your back. Try BYJU‘S free classes today!
C
To locate all types of frauds
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
To check the arithmetic accuracy of the ledger accounts
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
Open in App
Solution
The correct option is D To check the arithmetic accuracy of the ledger accounts Trial Balance is prepared by listing of all ledger balances. The statement in which the debit and credit balances are noted down and finally totaled up to ascertain if they are equal, is called Trial Balance.
The primary object of preparing the trial balance:
1) It is to check the accuracy of posting. If the trial balance agrees it proves that books are arithmetically accurate and both the aspects of all the transactions are correctly recorded.
2) It brings together the balances of all accounts at one place.