Types of Trial Balance

Q.

Prepare accounting equation from the following
(i) Started business with cash Rs. 1, 00, 000 and machinery Rs. 80, 000.
(ii) Purchased goods for cash Rs. 20, 000 and on credit Rs. 30, 000.
(iii) Sold goods for cash costing Rs. 10, 000 and on credit costing Rs. 15, 000 both at a profit of 20%
(iv) Cash withdrawn for personal use Rs. 10, 000.
(v) Accrud interest Rs. 2, 000.
(vi) Rent received in advance Rs. 1, 000.
(vii) Interest on capital @ 10% (only on cash introduced as capital).
(viii) Interest on drawings charged @ 5% (Total drawings till now is Rs. 10, 000).
(ix) Depreciation on machinery provided @ 10%.
(x) Rent paid in cash Rs. 1, 000 and rent outstanding Rs. 500.
(xi) Prepaid insurance Rs. 1, 000.
(xii) Bad debts written off Rs. 1, 000.

Q.

State the meaning of a trial balance.

Q.

Is trial balance an account or a statement ?

Q.

When bank column of a cash book shows a debit balance, what does it mean?

Q.

Trial balance is a link between the ledger and final accounts. Explain.

Q. Which of the following balances will be shown in the debit column of the trial balance?

1. Total purchases of Rs. 14, 680

2. Total bank overdraft of Rs. 4, 877

3. Both A and B

4. Total interest paid of Rs. 140

Q.

State true or false:

1) A Trial balance is an account.
2) A Trial balance is helpful for preparation of final accounts.
3) A Trial balance is most important document.
4) A Trial balance may be prepared on any date.
5) In Trial balance opening stock is recorded in credit balance column.
6) Both sides total of an account are taken in Gross Trial Balance.
7) Purchase account always shows debit balance.
8) A Trial balance is a List of Ledger balances.
9) A Trial balance does not ensure accounting accuracy.
10) A Trial balance shows only arithmetical accuracy.

Q.

Bank column of the cash book can have credit balance . Why ?

Q. ______ account/s will be shown on the credit side of the trial balance from the following options.

1. Discount received
2. Interest paid
3. Sales

4. Both A and B

Q.

Describe the purpose of the preparation of trial balance.

Q.

What are the methods of preparing trial balance?

Q.

What is a balance sheet? What are its characteristics?

Q. What are the methods of preparing Trial Balance?

Q.

What will be the effect on trial balance if Rs. 2, 000 received as rent and correctly entered in the cash book is not posted to rent account ?

Q.

Are cash discounts taxable?

Q. Answer in one sentence only :-

When is suspense account opened?

Q. Answer in only one sentence :

What is a Trial Balance?

Q. A trial balance will not tally if _______.

1. correct journal entry is posted twice
2. Rs. 5, 000 cash payment to creditors is debited to creditors for Rs.500 and credited to cash as Rs.5, 000
3. the purchase on credit basis is debited to purchases and credited to cash.
4. none of the above

Q.

Give one word, term or phrase for the following statement:

1) A List of Debit Balances and Credit balances in the ledger.
2) A Statement prepared to provide the base for preparing the final accounts.
3) A statement is prepared without balancing the ledger account.
4) Mention the side where goodwill A/c is appeared in the Trial Balance.
5) A List of both Ledger balances which is prepared after the closing of ledger Accounts.

Q. The table with summary of all account balances is called as .

1. journal
2. ledger
3. trial balance
4. balance sheet

Q.

Which of the following are the various types of Trial Balance?

1. All of the above

2. Trial balance using totals method

3. Trial balance using balances method

4. Trial balance using totals-cum-balances method

Q. What is a Balance sheet? What are its characteristics?

Q. _______ consists of a list of all the ledger balances on a particular date.

1. Trial Balance
2. Cash Flow Statement
3. None
4. Balance Sheet

Q. Fill in the blanks with correct alternative and rewrite the statements :

A Trial Balance provides the base for preparation of ________.
a) final accounts
b) voucher
c) debit note
d) credit note

Q. The cost of capital is a discount rate that is used in determining the __________________.

1. Sales volume
2. Output volume
3. The present value of future cash flows
4. The present value of future fund flows

Q. Give the word term or phrase which can substitute each of the following statements :

An allowance given by receiver of the cash to the giver of cash at the time of payment.

Q. State whether the following statements are True or False:
Final Accounts are prepared on the basis of Trial Balance.

1. True
2. False

Q. All the ledger a/c which have credit balance are placed on the ___of the Trial Balance.

1. None of the above

2. Credit side

3. No Adjustment

4. Debit side

Q.

Discount allowed is having a debit balance of Rs. 500. It will be shown in the credit column of the trial balance.

1. False
2. True

Q. Which of the following technique is used to ascertain the correctness of debtors balance in books?

1. Observation
2. Enquiry
3. Computation
4. Confirmation