Discussion
Which of the following is used for checking the arithmetical accuracy of the account books?
Answer: B
The arithmetical accuracy of the books is checked by the trial balance.
A trial balance lists the debit and credit balances of all ledger accounts on a date. Under double entry every debit has an equal credit, so the two totals must agree; if they do not, there is an arithmetical or posting error to find. Some errors, such as compensating errors or errors of omission, are not revealed even when it agrees.
The ledger holds the accounts themselves, the journal is the book of original entry, and the profit and loss account works out the profit, so none of them is a check of accuracy.
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