In accounting, a trial balance of ledger accounts is primarily prepared to achieve which of the following purposes?

Introduction / Context:
The trial balance is an important step in the accounting cycle. After transactions are recorded in journals and posted to ledger accounts, a trial balance is prepared to test the arithmetical accuracy of the ledger postings. Questions about the purpose of the trial balance are common in basic accounting exams because they test whether you understand the role of this document before the preparation of final accounts.

Given Data / Assumptions:

• A trial balance lists the balances of all ledger accounts with their debit and credit totals.
• Double entry bookkeeping requires that total debits always equal total credits.
• The trial balance is prepared before final financial statements.
• The question asks what the trial balance is prepared to do.

Concept / Approach:
The main purpose of a trial balance is to verify that the total of debit balances equals the total of credit balances after all transactions have been recorded and posted. If total debits and total credits do not match, it indicates that there is at least one error in the recording or posting of entries. The trial balance therefore acts as a basic check on the internal consistency of the ledger. It is not, by itself, a final financial statement, and it does not measure only debits or only credits; it compares both sides.

Step-by-Step Solution:
Step 1: Recall that in double entry accounting every transaction affects at least two accounts, with equal debit and credit amounts.Step 2: Recognise that the trial balance compiles all ledger balances on a specific date, separating debits and credits.Step 3: Understand that adding all debit balances and all credit balances should produce equal totals if entries have been correctly recorded.Step 4: Select the option that states the trial balance is prepared to check that total debits equal total credits, as this is the primary purpose.

Verification / Alternative check:
Imagine an example where a business records sales, purchases, expenses and receipts throughout the month. After posting all transactions to the ledger, the accountant prepares a trial balance that shows, for example, total debits of 500,000 rupees and total credits of 500,000 rupees. This equality suggests that the double entry has been applied correctly. If instead the totals differ, say debits are 480,000 and credits are 500,000, the accountant knows that there is an error such as a misposting or omission that must be investigated before moving on to the profit and loss account and balance sheet. This demonstrates the checking function of the trial balance.

Why Other Options Are Wrong:
Option A is wrong because the trial balance is not prepared only to measure credits; it always includes both sides. Option B is similarly incorrect because it is not limited to debits. Option D is wrong because the trial balance is not a final financial statement; it is an internal working document used to help prepare the final accounts. The final financial statements include the profit and loss account and the balance sheet, not the trial balance. Only option C correctly describes the purpose of checking that total debits equal total credits.

Common Pitfalls:
Students sometimes think that if the trial balance totals agree, there are no errors at all. In reality, some errors, such as compensating errors or errors of principle, will not be revealed by the trial balance. It only checks arithmetic equality, not correctness of account classification. Another pitfall is to think of the trial balance as an external report, when it is actually an internal step. For exam purposes, focus on its main role: to test the mathematical accuracy of ledger postings by ensuring that total debits equal total credits.

Final Answer:
A trial balance is prepared primarily to check that the total debits and total credits in the ledger are equal after posting.