Trial alance helps to check the accuracy of the:
Last updated May 15, 2026
Correct Answer:
Option B —
ledger
A Trial Balance is a statement that lists the closing balances of all ledger accounts at a particular date. Since every debit entry must have a corresponding credit entry (Double-Entry System), the total of the debit balances must equal the total of the credit balances.Why it checks the Ledger:
Mathematical Accuracy: If the two columns of the Trial Balance don't match, it is a clear sign that an error was made during the posting process from the Journal to the Ledger or while calculating the final balances of the Ledger accounts.
A Preliminary Step: It acts as a bridge between the Ledger and the final Financial Statements. You cannot reliably build a Balance Sheet or an Income Statement if your Ledger accounts are not balanced.
Why the other options don't fit:
A) Balance sheet: The Trial Balance is actually used to prepare the Balance Sheet, but it doesn't check its accuracy; rather, the Balance Sheet's accuracy depends on the Trial Balance.
C) Journals: While the Trial Balance can catch some errors made in the Journal, it is specifically designed to verify that the Ledger is balanced. It won't catch "Errors of Omission" (forgetting to record a transaction entirely in the Journal).
D) Cash flow statement: This is a specialized financial statement prepared much later in the cycle to track the movement of cash, not to check general bookkeeping accuracy.
Answer verified by Quintessence Classes faculty — Karan Nagar, Srinagar.
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