Is Trial Balance Merely A Proof of Arithmetical Accuracy Or Is Trial Balance A Conclusive Proof of Accuracy of Books of Accounts Explain
Is Trial Balance Merely A Proof of Arithmetical Accuracy Or A Conclusive Proof of Accuracy of Books of Accounts? Yes, Trial Balance is merely a proof of arithmetical accuracy as it shows that the total of debit account balances are equal to the total of credit accounts balance arithmetically. As it reveals only some sorts of errors, mistakes or frauds which are causing disagreement of trial balance but fails to show hidden and secret types of errors, mistakes and frauds which are causing agreement of trial balance, so it is not a conclusive proof of accuracy of Books of Accounts . This is the main limitation of trial balance. Note: Here Arithmetical Accuracy means mathematically correction or correction in quantity measurement i.e., the value wise or quantity wise correction. Eventhough, the total of debit accounts is equal to the total of credit accounts arithmetically but still there are certain types of errors, mistakes or frauds which are not disclosed or revealed in tri...