Trail balance is the test of arithmetic accuracy of balances in the ledgers. What is the matthematical logic behind trial balnce



0
Proof of what a trial balance is to a ledger

2 Answer(s)


0

for every transaction if there are 2 equal and opposing entries (i.e. Debit and Credit) the Trial Balance will always balance.

If I make a payment to a supplier, Mr.Nikhil, for Rs.20,000/- my entry will have equal and opposite effects according to double-entry system. proof is:

Dr. Mr.Nikhil 20,000
Cr. Cash 20,000

so if debits and credits in a balance sheet are for same amount they WILL always balance. that's the logic.


0

someone should please help me out with this. the balancing of the two side of the balance sheet (Asset and Liabilities ) is not a true test of arithemetic accuracy of the statement. please discuss it