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The agreement of the trial balance totals is an indication that all transactions have been properly...

The agreement of the trial balance totals is an indication that all transactions have been properly recorded in the books of accounts. Do you agree with this statement?

Required: Outline 4 reasons to justify your response.

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Expert Solution

NO.The agreement of the total of the trial balance shows the arithmetical accuracy of the balance of accounts.Trial balance is a list of all ledger account balances taken from various ledger books on a particular date to check the arithmetical accuracy. Trial Balance is not part of any books

The uses of the trial balance are :

1. To check the arithmetical accuracy.

The arithmetical accuracy of the recorded transactions are checked by the preparation of the trial balance. Trial balance will not affect the values of any ledgers

2. To ascertain the balance of any ledger Account.

Any ledger account balances can be found in the trial balance

3. To serve as an evidence of fact that the double entry has been completed in respect of every transaction.

For every debit there is a credit . the double entry system can be checked easily so as to knowwhether they are followed or not

4. To facilitate the preparation of final accounts promptly.

Its helps in preparation of the financial accounts as the consolidated list of all accounts appears in the Trial balanceNO.The agreement of the total of the trial balance shows the arithmetical accuracy of the balance of accounts.Trial balance is a list of all ledger account balances taken from various ledger books on a particular date to check the arithmetical accuracy. Trial Balance is not part of any books
The uses of the trial balance are :
1. To check the arithmetical accuracy.
The arithmetical accuracy of the recorded transactions are checked by the preparation of the trial balance. Trial balance will not affect the values of any ledgers
2. To ascertain the balance of any ledger Account.
Any ledger account balances can be found in the trial balance
3. To serve as an evidence of fact that the double entry has been completed in respect of every transaction.
For every debit there is a credit . the double entry system can be checked easily so as to knowwhether they are followed or not
4. To facilitate the preparation of final accounts promptly.
Its helps in preparation of the financial accounts as the consolidated list of all accounts appears in the Trial balance

ekkarill92 answered 1 year ago
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