What is the Trial Balance? Even if the trial balance agrees, some errors may remain. Do you agree? Explain.

Preparation of trial balance is the third phase in the accounting process. After posting the accounts in the ledger, a statement is prepared to show separately the debit and credit balances. Such a statement is known as the trial balance. Trial balance contains various ledger balances on a particular date. It forms the basis for preparing the financial statements i.e. profit and loss account and balance sheet. If it tallies, it means that the accounts are arithmetically accurate but certain errors may still remain undetected. Therefore, it is very important to carefully journalise and post the entries, following are rules of accounting. In spite of the agreement of the trial balance some errors may remain. These may be of the following types: Transaction has not been entered at all in the journal.A wrong amount has been written in both columns of the journal.A wrong account has been mentioned in the journal.An entry has not at all been posted in the ledger.Entry is posted twice in the ledger.Error of Principle i.e. treating revenue expenditure as capital expenditure or vice versaCompensating Error i.e. one error neutralises the effect of other error.