Question

The statement which checks the arithmetical accuracy of ledgers is called​

Answer 1

Answer:

In order to test the arithmetical accuracy of our ledger we should prepare a statement called trial balance. A trial balance is a statement prepared by taking out the debit and credit balances of all accounts appearing in the ledger.

Answer 2

ANSWER :

★ Trial Balance.

• ➯ The statement which checks the arithmetical accuracy of ledgers is called Trial Balance.

• ➯ Trial Balance is a means through which the arithmetical accuracy of the books of accounts can be tested.

_________________________________________________________

KNOW MORE :

❒ Definition of Trial Balance by different authors :-

• ✎ According to Carter, "Trial balance is the list of debit and credit balances taken out from ledgers. It also include the balances of cash and bank taken from cash book".

• ✎ According to J.R. Batliboi, "Trial balance is a statement prepared with a debit and credit balances of ledger accounts to test the arithmetical accuracy of the books".

• ✎ According to William Pickles, "The statement prepared with the help of ledger balances at the end of financial year or at any other date to find out whether debit total agrees with total credit is called Trial Balance".

____________________________________________

❒ Features of Trial Balance :-

• ✎ Trial balance is merely a statement not an account.

• ✎ Trial balance is prepared from the debit and credit balances of the ledger accounts.

• ✎ Trial balance helps to find out the arithmetical accuracy of the books of accounts.

• ✎ Trial balance is not a part of the double entry system of accounting.

• ✎ Trial balance is not a conclusive proof of accuracy of the books of accounts.

• ✎ Trial balance is prepared at the end of certain periods such as weekly, monthly, quarterly, half-yearly, yearly etc.