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Trial Balance

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Trial Balance

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by AvatarJohn Moffat.
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  • December 19, 2020 at 5:45 pm #600345
    Avatarmaximus07
    Participant
    • Topics: 446
    • Replies: 437
    • ☆☆☆☆

    The main purpose of preparing a trial balance is

    A) to prepare a summary of all the balance

    B) to compare the debit balance with credit balance

    C) to locate all types of frauds

    D) to check the arithmetic accuracy of the ledger accounts

    Sir can you please tell me that how ‘D’ is the answer. If we do many error like error of compensation so arithmetic accuracy fails.

    December 20, 2020 at 10:32 am #600376
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54836
    • ☆☆☆☆☆

    If the trial balance does not balance then one or more of the balances must be wrong (whatever the reason for them being wrong, the balances can not all be correct).

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