JKSSB Written 2024
Answer & Explanation
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Correct Answer:
Option B —
Ledger
A Trial Balance is a statement prepared with the debit and credit balances of all ledger accounts to test their arithmetical accuracy.If the total of the debit column equals the total of the credit column, it suggests that the posting from the journals to the ledger accounts has been done correctly in terms of numbers.
It serves as the bridge between the bookkeeping phase (recording and classifying) and the preparation of final financial statements.
Note: While it checks arithmetical accuracy, it does not detect all errors, such as errors of principle or complete omission.
Why other options are incorrect:
A) Balance sheet: The Trial Balance is actually used as a source to prepare the Balance Sheet, not to check its accuracy.
C) Journals: Journals are the books of original entry. Accuracy here is checked during the process of posting to the ledger, but the Trial Balance specifically summarizes the ledger results.
D) Cash flow statement: This is a financial statement prepared much later in the accounting cycle to show the inflows and outflows of cash; it is not verified by a Trial Balance.
Answer verified by Quintessence Classes faculty — Karan Nagar, Srinagar.