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