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A Level Accounting (9706)•9706/13/M/J/24
Question 8 from 9706/13/M/J/24

Explanation

Trial balance detects errors causing debit-credit imbalance

Steps:

  • Trial balance sums all debit and credit ledger balances to verify equality.
  • It identifies errors like posting to the wrong side (error 2), which reverses an entry's effect.
  • It also catches arithmetic errors in totaling accounts (error 4), leading to incorrect balances.
  • Errors 1 (principle) and 3 (complete omission) leave totals equal, so undetected.

Why C is correct:

  • Trial balance checks arithmetic accuracy by ensuring debits equal credits; errors 2 and 4 violate this equality per double-entry rules.

Why the others are wrong:

  • A: Error 1 (principle) compensates and balances totals.
  • B: Errors 1 and 3 both maintain equality.
  • D: Error 3 (complete omission) omits both sides equally.

Final answer: C

Topic: Reconciliation and verification

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