NCERT Book Class 11 Accountancy Chapter 6 Trial Balance and Rectification of Errors

180 Accountancy

Trial Balance and Rectification of Errors 6

I n the earlier chapters, you have learnt about the
basic principles of accounting that for every debit
there will be an equal credit. It implies that if the
sum of all debits equals the sum of all credits, it is
LEARNING OBJECTIVES presumed that the posting to the ledger in terms
After studying this chapter, of debit and credit amounts is accurate. The trial
you will be able to : balance is a tool for verifying the correctness of
• state the meaning of debit and credit amounts. It is an arithmetical
trial balance; check under the double entry system which verifies
• enumerate the objectives that both aspects of every transaction have been
of preparing trial
balance ;
recorded accurately. This chapter explains the
meaning and process of preparation of trial balance
• prepare trial balance;
and the types of errors and their rectification.
• explain the types of
errors;
6.1 Meaning of Trial Balance
• state various process
of locating errors ; A trial balance is a statement showing the
• identify the errors which balances, or total of debits and credits, of all the
affect the agreement of accounts in the ledger with a view to verify the
trial balance and those
which do not affect the
arithmatical accuracy of posting into the ledger
agreement of trial accounts. Trial balance is an important statement
balance; in the accounting process as it shows the final
• rectify the errors position of all accounts and helps in preparing the
without preparing final statements. The task of preparing the
suspense account; statements is simplified because the accountant
and
can take the balances of all accounts from the trial
• rectify the errors with balance instead of going through the whole ledger.
suspense account.
It may be noted that the trial balance is usually
prepared with the balances of accounts.