A Trial balance is helpful for preparation of final account.

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. The preparation of a trial balance helps in locating ______________.

Q. From the following Trial Balance of Mahesh, prepare his Final Accounts for the year ended 31st March, 2019:


Heads of Accounts	Debit Balances (₹)	Credit Balances (₹)
Purchases	2,50,000	…
Sales	…	5,00,000
Returns Inward	12,000	...
Returns Outward	…	10,000
Carriage	8,000	…
Wages	60,000	…
Miscellaneous Expenses	2,000	…
Insurance	1,200	…
Repairs	8,000	…
Debtors	1,15,000	…
Creditors	…	1,00,000
Printing and Stationery	6,000	…
Advertisement	15,000	…
Bills Receivable	4,000	…
Bills Payable	…	2,000
Opening Stock	30,000	…
Cash in Hand	12,000	…
Interest on Bank Loan	2,800	…
Machinery	2,80,000	…
Furniture	34,000	…
Drawings	20,000	…
Commission	…	1,000
12% Bank Loan	…	30,000
Capital	…	2,40,000
Rent Received	…	5,000
Cash at Bank	28,000	…
Total	8,88,000	8,88,000

Additional Information:
(i) Closing Stock on 31st March, 2019 was ₹ 21,000.
(ii) Rent of ₹ 1,200 has been received in advance.
(iii) Outstanding liability for Miscellaneous expenses ₹ 12,000.
(iv) Commission earned during the year but not received was ₹ 2,100.
(v) Goods costing ₹ 2,000 were taken by the proprietor for his personal use but entry was not passed in the books of account.

Q. From the following Trial Balance of Mahesh, prepare his Final Accounts for the year ended 31st March, 2018:

TRIAL BALANCE as on 31st March, 2018
Heads of Accounts		Debit Balances (₹)	Credit Balances (₹)
Purchases	................................................................................	2,50,000	…
Sales	................................................................................	…	5,00,000
Returns Inward	................................................................................	12,000	...
Returns Outward	................................................................................	…	10,000
Carriage	................................................................................	8,000	…
Wages	................................................................................	60,000	…
Trade Expenses	................................................................................	2,000	…
Insurance	................................................................................	1,200	…
Repairs	................................................................................	8,000	…
Debtors	................................................................................	1,15,000	…
Creditors	................................................................................	…	1,00,000
Printing and Stationery	................................................................................	6,000	…
Advertisement	................................................................................	15,000	…
Bills Receivable	................................................................................	4,000	…
Bills Payable	................................................................................	…	2,000
Opening Stock	................................................................................	30,000	…
Cash in Hand	................................................................................	12,000	…
Interest on Bank Loan	................................................................................	2,800	…
Machinery	................................................................................	2,80,000	…
Furniture	................................................................................	34,000	…
Drawings	................................................................................	20,000	…
Commission	................................................................................	…	1,000
12% Bank Loan	................................................................................	…	30,000
Capital	................................................................................	…	2,40,000
Rent Received	................................................................................	…	5,000
Cash at Bank	................................................................................	28,000	…
Total		8,88,000	8,88,000

Additional Information:
(i) Closing Stock on 31st March, 2018 was ₹ 21,000.
(ii) Rent of ₹ 1,200 has been received in advance.
(iii) Outstanding liability for trade expenses ₹ 12,000.
(iv) Commission earned during the year but not received was ₹ 2,100.
(v) Goods costing ₹ 2,000 were taken by the proprietor for his personal use but no entry has been passed in the books of account.

Q.

Show the treatment of prepaid expenses, depreciation, closing stock at the time of preparation of final accounts-

(a) When given inside the trial balance.

(b) When given outside the trial balance.