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WAEC Financial Accounting 1995 Question 41

Question 41

Trial Balance

Which of the following is not true of a Trial Balance?

  1. A.List taken of the account balances in the general ledger
  2. B.Proof of the arithmetical accuracy of the ledger postings
  3. C.Summary of data for the preparation of financial statements
  4. D.List of accounts abstracted from a subsidiary ledger to check their agreement with the related control accounts
  5. E.List of balances ensuring that the accounts are correct.
Show the answer and explanation

Answer: D (List of accounts abstracted from a subsidiary ledger to check their agreement with the related control accounts)

Explanation

A list from a subsidiary ledger checked against its control account is a schedule of debtors or creditors, not a trial balance.