Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounts for Non Profit Organsiation

Question:

What is prepared by an organisation to check the accuracy of the ledger accounts, if an organisation has followed the double entry system?

Options:

Trial balance

Profit and loss account

Trading account

Balance sheet

Correct Answer:

Trial balance

Explanation:

The correct answer is option 1- Trial balance.

If an organisation has followed the double entry system they must prepare a trial balance for checking the accuracy of the ledger accounts and it will also facilitate the preparation of Receipt and Payment account.