Question

A ledger can replace a trial balance for verifying arithmetical accuracy in accounts.

Options

• True

• False

Answer 1

False

Explanation:

A ledger records individual accounts, but it cannot verify the arithmetical accuracy of all accounts as a whole. A trial balance, however, is specifically prepared to check the mathematical accuracy of postings in the ledger by ensuring that total debits equal total credits.

Hence, a ledger cannot replace a trial balance for verifying arithmetical accuracy in accounts.