Banking · Trial Balance and Error Rectification
Consider the following statements regarding a Trial Balance: Statement I: The Trial Balance provides conclusive evidence that all transactions have been recorded according to the dual aspect concept. Statement II: A tallied Trial Balance can still harbor errors of principle, such as when a capital expenditure is debited to a revenue expense account. Statement III: The Trial Balance is a part of the final accounts (Balance Sheet and P&L Account) presented to shareholders. Statement IV: One-sided clerical errors will result in a Trial Balance that does not agree. Statement V: The Suspense Account is a permanent ledger account that remains in the Balance Sheet indefinitely. Which of the statements are correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Only I and II
- 2Only II and IV✓
- 3Only IV and V
- 4All statements are correct
Correct answer
Only II and IV
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