Which of the following is NOT an essential part of the accounting records?

• A. Trial balance
• B. Personal diaries of employees
• C. General ledger
• D. Journal entries

Answer: (B)

Verified step by step guidance

1. Understand the purpose of accounting records: Accounting records are formal documents that track financial transactions and are essential for preparing financial statements and ensuring compliance with accounting standards.
2. Review the options provided: Trial balance, General ledger, Journal entries, and Personal diaries of employees.
3. Clarify the role of each option: The trial balance is a summary of all ledger accounts to ensure debits equal credits. The general ledger contains detailed accounts for all transactions. Journal entries are the initial recording of transactions in chronological order.
4. Evaluate the relevance of 'Personal diaries of employees': Personal diaries are not formal accounting records and do not contribute to the financial reporting process. They are unrelated to the structured system of accounting.
5. Conclude that 'Personal diaries of employees' is NOT an essential part of accounting records because it does not serve any accounting purpose or adhere to the principles of financial accounting.