Trial balance is a statement which is prepared to check the
arthematical accuracy of the accounts.
It will be prepared with the help of balances of different
accounts in ledger. or It can be prepared based on following
Debit: All expenses, losses and assets
Credit: All Incomes, gains and liabilities
trial balance is consist the ledger balances of all
expenses,revenues,profits and owners accounts i.e
capital,drawings. the main purpose of trail balance is check
the arthamatic accuracy of transactions. this shows the
actual balances of particular accounts.
Main purpose of trial balance is to check the arithmetical
accuracy, debit and credit is balanced during transaction
posting, and account balance reflects actual circumstance
following accounting principle.
Trail balance is a statement containing the balance of
ledger accounts as at any given date, arranged in the form
of debit and credit columns, placed side by side prepared
with the object of checking the arthemetical accuracy of
raising funds throgh debt-equity in indian economy.
if a firm is goint to use it & after year if depression is
continue in economy & it faces inflation currently.
their is a 50-50 risk on both.
what is the right choice?