Advantages and Disadvantages of Trial Balance

Advantages of trial balance

 

1. To check the debits equal the credits
2. To find the uncover errors in journalizing
3. To find the uncover errors in posting
4. To locate the errors in ledger accounts
5. To make financial statements
6. To list the accounts at a single place

Disadvantages of trial balance

A trial balance has some disadvantages. Such of them are as follows:

1. It does not prove that all transactions have been recorded
2. It does not prove that the ledger is correct
3. Numerous errors may exist even though the trial balance columns agree
4. It cannot find the missing entry from the journal
5. It cannot find the missing entry from the ledger
6. It cannot protect the repeated postings
7. It cannot protect the offsetting errors