Question

“A trial balance is merely a proof of arithmetical accuracy.” Comment.

Answer 1

A trial balance is a statement showing debit and credit balances of ledger accounts. It primarily proves arithmetical accuracy by verifying that total debits equal total credits, ensuring no addition or posting errors. However, it is “merely” proof of arithmetic correctness because it cannot detect errors like omissions, wrong account postings, or transactions recorded with equal wrong amounts on both sides. Therefore, it does not guarantee the overall accuracy of the books, only their mathematical correctness.