What are the three limitations of trial balance?

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The limitations of trial balance are:

  • There are certain errors which are not disclosed by a trial balance. Again the agreement of a trial balance is not a conclusive proof of the accuracy of posting.

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  • A trial balance gives only condensed information of each account.
  • It does not give information about the profit or loss made by the business in the accounting period or financial position of the business as at the close of the period.
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