Multiple choice

A mistake necessitating rectification may occur even when the trial balance is tallied.

  1. True

  2. False
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A Correct answer
Explanation

Explanation: Trial balance is a test to see the arithmetical accuracy in the various books of accounts. However, errors are likely to happen. There are different types of errors. The errors are to be located and rectification entries are to be passed. When the trial balance does not tally, the error is evident. Sometimes, if there are compensating errors in the primary or subsidiary books of accounts, then trial balance may tally. The accountant should be intelligent to locate such an error.

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