PRC-1 · Chapter 3 · Question 51 of 100
What is the primary purpose of extracting a trial balance at the end of an accounting period?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) To verify the arithmetical accuracy of the double-entry bookkeeping.
Explanation
A trial balance is a list of all ledger balances. Its primary purpose is to ensure that the total of all debit balances equals the total of all credit balances, confirming arithmetical accuracy.
More Ledgers and Trial Balance MCQs
- Q53If the bank account in the general ledger shows a credit balance brought down (Balance b/d), what does this signify?
- Q54The Trade Payables account has an opening credit balance of Rs. 66,450. During the period, purchases were Rs. 205,600, payments made were…
- Q55The Trade Receivables account has an opening debit balance of Rs. 46,652. During the period, sales were Rs. 245,000, cash received was Rs…
- Q56Which of the following ledgers typically contains the Owner's Capital account and the Drawings account?
- Q57In which specific ledger would the 'Return Inwards' (Sales Returns) account be permanently located?