Chapter 5 and 6

Question 1

Purpose of the trial balance

Answer 1

The purpose of the Trial Balance is to check that the total debit entries equal the total credit entries in the General Ledger accounts. This helps to ensure that the double entry process has been done accurately and identifies if any recording errors have been made. Such errors can then be rectified before final reports are prepared.

Question 2

General Journal

Answer 2

An accounting record used to record all transactions including in-frequent non-cash transactions.