In a trial balance where are debit balances placed?

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Solution

The debit balances are placed on the left column of a trial balance.

Also read:

How to Prepare Trial Balance

Income and Expenditure Account Based on Trial Balance

MCQs on Trial Balance

Learn about more questions and answers on business studies and various other commerce topics from our website.

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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.

As an accountant of a company, you are disappointed to learn that the totals in your new trial balance are not equal. After going through a careful analysis, you have discovered only one error. Specifically, the balance of the Office Equipment account has a debit balance of Rs. 15,600 on the trial balance. However, you have figured out that a correctly recorded credit purchase of pen-drive for Rs 3,500 was posted from the journal to the ledger with a Rs. 3,500 debit to Office Equipment and another Rs. 3,500 debit to creditors accounts. Answer each of the following questions and present the amount of any misstatement :

(a) Is the balance of the office equipment account overstated, understated, or correctly stated in the trial balance?

(b) Is the balance of the creditors account overstated, understated, or correctly stated in the trial balance?

(d) Is the credit column total of the trial balance overstated, understated, or correctly stated?

(e) If the debit column total of the trial balance is Rs. 2,40,000 before correcting the error, what is the total of credit column.

Q. When item is shown on the debit side of a trial balance?

Q. Which item is shown on the debit side of a trial balance?

If the total of the debit column in the trial balance is more than the credit column, the difference is placed to the_____ of suspense account so that the trial balance may tally.

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In a trial balance where are debit balances placed?

The debit balances are placed on the left column of a trial balance. Also read: How to Prepare Trial Balance Income and Expenditure Account Based on Trial Balance MCQs on Trial Balance Learn about more questions and answers on business studies and various other commerce topics from our website.