Commerce Exam  >  Commerce Questions  >  Trial Balance is a :a)Statementb)Accountc)Sum... Start Learning for Free
 Trial Balance is a :
  • a)
    Statement
  • b)
    Account
  • c)
    Summary
  • d)
    Ledger 
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Trial Balance is a :a)Statementb)Accountc)Summaryd)LedgerCorrect answe...
Trial balance is book keeping It's not a part of accounting that's why it is statement
Free Test
Community Answer
Trial Balance is a :a)Statementb)Accountc)Summaryd)LedgerCorrect answe...
Statement
Trial Balance is a statement in accounting that lists all the general ledger accounts of a company along with their respective debit or credit balances. It is prepared at the end of an accounting period to ensure the accuracy of the recorded transactions.

Summary of Accounts
The primary purpose of a Trial Balance is to summarize the balances of all accounts in the general ledger. It provides a snapshot of the financial position of a company at a specific point in time. The balances of all accounts, including assets, liabilities, equity, revenues, and expenses, are listed in the Trial Balance.

Double-Entry Bookkeeping
Trial Balance is based on the principle of double-entry bookkeeping, which states that every financial transaction affects at least two accounts. Each transaction has a debit entry and a corresponding credit entry. The Trial Balance ensures that the total debits equal the total credits, which is a fundamental principle in accounting.

Debits and Credits
In the Trial Balance, accounts with debit balances are listed in the left column, while accounts with credit balances are listed in the right column. This format allows for easy identification of any imbalances or errors in the recording of transactions. If the total debits and credits do not match, it indicates that there are errors in the accounting records that need to be identified and rectified.

Preparation and Purpose
Trial Balance is usually prepared by the bookkeeper or accountant at the end of an accounting period, such as a month or a year. It serves as an internal control mechanism to detect errors and ensure the accuracy of financial statements. By comparing the Trial Balance with other financial reports, such as the Income Statement and Balance Sheet, any discrepancies or inconsistencies can be identified and corrected.

Limitations
Although Trial Balance is a useful tool for verifying the accuracy of recorded transactions, it has certain limitations. It cannot detect all types of errors, such as errors of omission or errors that cancel each other out. Additionally, a Trial Balance does not guarantee the absence of errors in the accounting records, but it helps in identifying discrepancies that require further investigation.

Conclusion
In conclusion, Trial Balance is a statement in accounting that summarizes the balances of all general ledger accounts. It serves as a tool for verifying the accuracy of recorded transactions and is an essential part of the double-entry bookkeeping system. By comparing the debits and credits, any errors or discrepancies can be identified and rectified, ensuring the reliability of financial statements.
Explore Courses for Commerce exam
Trial Balance is a :a)Statementb)Accountc)Summaryd)LedgerCorrect answer is option 'A'. Can you explain this answer?
Question Description
Trial Balance is a :a)Statementb)Accountc)Summaryd)LedgerCorrect answer is option 'A'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Trial Balance is a :a)Statementb)Accountc)Summaryd)LedgerCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Trial Balance is a :a)Statementb)Accountc)Summaryd)LedgerCorrect answer is option 'A'. Can you explain this answer?.
Solutions for Trial Balance is a :a)Statementb)Accountc)Summaryd)LedgerCorrect answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce. Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of Trial Balance is a :a)Statementb)Accountc)Summaryd)LedgerCorrect answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Trial Balance is a :a)Statementb)Accountc)Summaryd)LedgerCorrect answer is option 'A'. Can you explain this answer?, a detailed solution for Trial Balance is a :a)Statementb)Accountc)Summaryd)LedgerCorrect answer is option 'A'. Can you explain this answer? has been provided alongside types of Trial Balance is a :a)Statementb)Accountc)Summaryd)LedgerCorrect answer is option 'A'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Trial Balance is a :a)Statementb)Accountc)Summaryd)LedgerCorrect answer is option 'A'. Can you explain this answer? tests, examples and also practice Commerce tests.
Explore Courses for Commerce exam
Signup to solve all Doubts
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev