Explanation:

Trial balance is a statement of debit and credit balances extracted from the ledger accounts on a particular date. It is prepared to check the mathematical accuracy of the books of accounts. The purpose of preparing a trial balance is to ensure that the total of debits and credits are equal. However, the agreement of a trial balance does not guarantee the accuracy of the books of accounts.

Conclusive Proof of Accuracy:

The agreement of a trial balance is not a conclusive proof of accuracy because it does not verify the following:

1. Accuracy of transactions: The trial balance only checks the mathematical accuracy of the books of accounts, but it does not verify the accuracy of the underlying transactions. Therefore, errors in transactions can still be present even if the trial balance agrees.

2. Omission of transactions: If a transaction is omitted from the books of accounts, it will not appear in the trial balance. Therefore, the agreement of a trial balance does not ensure the completeness of the books of accounts.

3. Compensating errors: If two or more errors of the same amount but on opposite sides are made in the books of accounts, they will not affect the agreement of the trial balance. Thus, the agreement of the trial balance may conceal errors.

4. Errors of principle: Errors of principle occur when a transaction is recorded in the wrong account. These errors will not affect the agreement of the trial balance, but they will affect the accuracy of the books of accounts.

Conclusion:

In conclusion, the agreement of a trial balance is not a conclusive proof of accuracy. It only helps in detecting errors of arithmetic and the difference between the debit and credit balance. Therefore, it is important to verify the accuracy of the books of accounts by conducting a detailed audit.

It's conclusive because it shows all balances of assets and liabilities at end of year which give glimpse of financial position of business