BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -However, the tallying of the trial balance is not a conclusive proof of the accuracy of the accounts. It only ensures that all debits and the corresponding credits have been properly recorded in the ledger.

Detailed explanation-2: -A trial balance does not prove that all transactions have been recorded or that the ledger is correct. The double-entry system is a logical method for recording transactions and results in equal debits and credits for each transaction. The normal balance of an expense is a credit.

Detailed explanation-3: -Trial balance shows the total of debit and total of credit. Its a proof that all transactions are recorded both the sides.

Detailed explanation-4: -Trial Balance is a list of closing balances of ledger accounts on a certain date and is the first step towards the preparation of financial statements. It is usually prepared at the end of an accounting period to assist in the drafting of financial statements.

Detailed explanation-5: -Trial balance is a worksheet in bookkeeping that contains ledger balance compiled in sections of debit and credit. This worksheet is used for creating the balance sheet. Preparation of trial balance is to ensure mathematical correctness of the transactions recorded. Hence the given statement is true.