WAEC - Accounts Principles Of Accounts (2010 - No. 2)

A trial balance is prepared to
detect fraud
ascertain losses in a trading period
determine opening capital
test arithmetical accuracy of ledger entries

Explanation

Preparing a trial balance for a company serves to detect any mathematical errors that have occurred in the double-entry accounting system. If the total debits equal the total credits, the trial balance is considered to be balanced, and there should be no mathematical errors in the ledgers.

Comments (0)

Advertisement