A Trial Balance shows

The correct answer is C. Arithmetical accuracy of ledger balances.

A trial balance is a list of all the accounts in a general ledger and their balances. It is prepared at the end of an accounting period to verify that the debits and credits are equal. A trial balance does not show the balance of the profit and loss account or the balance sheet. It also does not show the complete accuracy of accounting done by the accountant.

A trial balance is a useful tool for accountants, but it is not a substitute for a thorough audit. An audit is a more comprehensive review of financial statements that is designed to detect errors and fraud.

Here is a brief explanation of each option:

• A. The balance of Profit and Loss Account. The profit and loss account is a statement of income and expenses for a specific period of time. It shows the difference between revenue and expenses, which is called net income or net loss. The profit and loss account is not included in a trial balance.
• B. Complete accuracy of accounting done by the accountant. A trial balance does not show the complete accuracy of accounting done by the accountant. It is possible for a trial balance to balance even if there are errors in the accounting records.
• C. Arithmetical accuracy of ledger balances. A trial balance shows the arithmetical accuracy of ledger balances. This means that the total of all the debits must equal the total of all the credits. If the trial balance does not balance, then there is an error in the accounting records.
• D. Balance between assets and liabilities. A trial balance does not show the balance between assets and liabilities. The balance sheet is a statement of financial position that shows the assets, liabilities, and equity of a company at a specific point in time. The balance sheet shows the relationship between assets and liabilities, but it is not included in a trial balance.