The preparation of trial balance is essential in the accounting process as it helps in identifying and locating clerical errors. The trial balance is a statement that lists all the balances of the ledger accounts in the form of debit and credit. It serves as a tool to ensure the accuracy of the accounting records and provides a summary of the financial transactions recorded in the ledger.

Locating Clerical Errors:
One of the primary purposes of preparing a trial balance is to identify and locate clerical errors. Clerical errors can occur during the recording, posting, or totaling of transactions in the accounting system. These errors may include mistakes in recording the wrong amount, posting entries to the wrong accounts, or incorrectly totaling the debits and credits. By comparing the totals of the debit and credit columns in the trial balance, any discrepancies or imbalances can be easily identified, indicating the presence of clerical errors.

Identifying Errors of Commission and Principle:
While the trial balance is primarily used to locate clerical errors, it can also indirectly help in identifying errors of commission and principle. Errors of commission refer to mistakes made intentionally or unintentionally while recording transactions. These errors may involve incorrect classification, double counting, or omission of transactions. Errors of principle, on the other hand, occur when fundamental accounting principles are violated, such as recording revenue as an expense or vice versa.

Although the trial balance may not directly highlight errors of commission or principle, it can indirectly point towards their existence. If the trial balance does not balance, it suggests that there is an error somewhere in the accounting records. Further investigation and scrutiny will be required to identify the nature of the error, whether it is a clerical error, an error of commission, or an error of principle. Therefore, while the trial balance does not directly locate errors of commission or principle, it plays a crucial role in indicating their presence, leading to further investigation and correction.

In conclusion, the preparation of a trial balance is primarily for locating clerical errors. However, it indirectly helps in identifying errors of commission and principle by highlighting imbalances or discrepancies in the debit and credit totals. Therefore, the correct answer to the question is option 'C'.