11th NCERT Accountancy Chapter 6

– Meaning of trial balance: A statement showing the abstract of the balance (debit/credit) of various accounts in the ledger.

– Objectives of trial balance: The main objectives are to ascertain the arithmetical accuracy of the ledger accounts, help in locating errors, and aid in the preparation of final accounts.

– Preparation of trial balance by the balance method: It involves three columns for the head of the account, debit balance, and credit balance of each account in the ledger.

– Various types of errors: Include errors of commission, errors of omission, errors of principle, and compensating errors.

– Rectification of errors: Errors affecting one account can be rectified by an explanatory note or journal entry; those affecting multiple accounts require a journal entry.

– Suspense account: A tool to hold the difference in the trial balance until errors are found and rectified, aiding in financial statement preparation【4:1†source】【4:4†source】.