A Trial balance provides the base for preparation of __________.

final accounts

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vouchers

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debit notes

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credit notes

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Solution

The correct option is B final accounts
Trial Balance is prepared by taking the balances of all ledger account. It is a list of all ledger account. Trial balance is prepared to check the arithmetical accuracy. If trial balance agrees, it provides the base to prepare the final accounts. Financial statements are prepared using all these ledger balances in the trading, profit & loss account and the balance sheet.

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Similar questions

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

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.

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 following is the Trial Balance prepared by an inexperienced accountant. Redraft it in a correct form and give necessary notes : −

TRIAL BALANCE
for the year ending 31st March, 2017

Particulars	Amount	Particulars	Amount
	₹		₹
Cash in Hand	5,200	Bank Overdraft	16,400
Plant & Machinery	75,000	Capital	50,000
Typewriter	6,400	Goodwill	8,000
Stock (1-4-2016)	13,100	Sundry Creditors	8,200
Purchases	84,100	Sales	1,60,000
Carriage Inwards	2,800	Return Inwards	2,400
Carriage Outwards	1,600	Drawings	2,120
Sundry Debtors	18,300	Investments	4,000
Bills Payable	12,000
Rent Paid	9,600
Wages	16,500
Advertisement	4,500
Discount Received	3,200
	2,52,300		2,51,120

Q. The preparation of a trial balance is for locating -

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