State the limitations of a Trial Balance - QS Study
QS Study

Limitations of a Trial Balance

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

  • It does not prove that all transactions have been recorded.
  • It does not prove that the ledger is correct.
  • Numerous errors may exist even though the trial balance columns agree.
  • It cannot find the missing entry from the journal.
  • Cannot find the missing entry from the ledger.
  • It cannot protect the repeated postings.
  • It cannot protect the offsetting errors.
  • Cannot protect the errors of principles.
  • It cannot protect the errors of commission.
  • It cannot protect the errors of omission.

In short, a trial balance does not guarantee freedom from recording errors.