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A trial balance is prepared to

Accounts - Principles of Accounts
WAEC 2010

A trial balance is prepared to

  • A. detect fraud
  • B. ascertain losses in a trading period
  • C. determine opening capital
  • D. test arithmetical accuracy of ledger entries
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Correct Answer: Option D
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.


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