Explain any four roles of a trial balance to the entrepreneur

Explain any four roles of a trial balance to the entrepreneur

 

ANSWER IS!

  1. It is the prerequisite for the preparation of other financial statements. Hence it is equal to a working paper.
  2. It ensures that the double entry principle is adhered to such that for every DR entry, a corresponding CR entry is made by the person concerned. It the two sides of the trial balance does not equal, then the trial balance will detect that and corrective measures undertaken
  3. It is a summary of all the ledger accounts affected by transactions in that particular period under investigation.
  4. It is used in identification and rectification of errors