Question

The preparation of a trial balance helps in locating ______________.

• A. Errors in Principle
• B. Errors of Omission
• C. Clerical Errors
• D. Compensatory Errors

Answer 1

Answer: (C)

Clerical Errors

While recording the transaction, there is a possibility of having the error. Since accounting is based on double entry system, for every debit there will be a credit. Hence at any point of time, trial balance must be tallied. If trial balance dose not matches, there must be some clerical error.