State the meaning of a trial balance.

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Solution

A trial balance is a statement showing the balances or total of debits and credits, of all the accounts in the ledger with a view to verify the arithmetical accuracy of posting into the ledger accounts.

It is prepared after balancing all the accounts of a ledger, that's why there are two columns in a Trial Balance; debit and credit. Debit side of trial balance includes all the debit balances and credit side includes all the credit balances of the ledger accounts.

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State the meaning of a Trial Balance?

Q. State the limitations of Trial balance.

Q. State whether the following statement is True or False.
Net trial balance is more popular than gross trial balance.

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. State whether the following statement is True or False.
Capital balance is not included in a trial balance.

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