- 6 Marks
FA – May 2015 – L1 – Q4a – Trial Balance: Usefulness and Limitations
Identify the uses of a trial balance, errors that lead to a difference in trial balance figures, and errors that do not affect the balancing of the trial balance.
Question
The purpose of a trial balance is to prove the accuracy of the General Ledger accounts of a business. However, the “balancing” of the debit side and the credit side of a trial balance does not guarantee that there is no error in the General Ledger accounts.
i. State TWO uses of a trial balance to an entity. (2 Marks)
ii. State FOUR errors that may lead to difference in trial balance total figures. (2 Marks)
iii. State FOUR errors that may NOT affect the “balancing” of a trial balance. (2 Marks)
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