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.
image source: cakinc.com/images/gen-led-trial-balance.jpg
- 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.