NCERT Class 11 Accountancy — What is the primary objective

NCERT · Class 11 · Accountancy · Trial Balance and Rectification of ErrorsWhat is the primary objective of preparing a Trial Balance?

Step-by-Step Solution

The primary objective of preparing a Trial Balance is to check the arithmetical accuracy of the ledger accounts. It ensures that the total of all debit balances equals the total of all credit balances, thereby verifying that the double-entry system has been correctly applied in posting transactions.

Detailed Options Breakdown

Option : To ascertain net profit or net loss

Incorrect choice. This distractor represents a common misunderstanding of the core principles of Trial Balance and Rectification of Errors.

Option 1: To check the arithmetical accuracy of accounts (Correct Answer)

Correct choice. Refer to the step-by-step verified solution guidelines above for details.

Option 2: To know the financial position of the business

Incorrect choice. This distractor represents a common misunderstanding of the core principles of Trial Balance and Rectification of Errors.

Option 3: To calculate total assets and liabilities

Incorrect choice. This distractor represents a common misunderstanding of the core principles of Trial Balance and Rectification of Errors.

💡 Study Guide: This question tests core syllabus concepts from Trial Balance and Rectification of Errors. For formulas, key summaries, and mock exam reference guides, read the full Trial Balance and Rectification of Errors Revision Notes.

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