Explain any four roles of a trial balance to the entrepreneur
Explain any four roles of a trial balance to the entrepreneur
ANSWER IS!
- It is the prerequisite for the preparation of other financial statements. Hence it is equal to a working paper.
- 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
- It is a summary of all the ledger accounts affected by transactions in that particular period under investigation.
- It is used in identification and rectification of errors
About the Author - Dr Geoffrey Mbuva(PhD-Finance) is a lecturer of Finance and Accountancy at Kenyatta University, Kenya. He is an enthusiast of teaching and making accounting & research tutorials for his readers.
