Question

State whether the following statements are True or False.
Total of both sides of an account are taken in Gross Trial balance.

• A. True
• B. False

Answer 1

The correct option is A True

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.

Under gross trial balance, the two sides of all the ledger accounts are totaled up. Thereafter, a list of all the accounts is prepared in a separate sheet of paper with two "amount" columns on the right hand side. The first one for debit amounts and the second one for credit amounts. The total of debit side and credit side of each account is then placed on "debit amount" column and "credit amount" column respectively of the list. Finally the two columns are added separately to see whether they agree or not. This method is generally not followed in practice.