Question

The balances of all liabilities accounts, income accounts, profits, capital are placed in the _________ of the trial balance.

• A. credit column
• B. debit column
• C. ledger folio
• D. none of the above

Answer 1

Answer: (A)

credit column

There are golden rule of accounting for recording the transactions based on the type of account i.e personal a/c, real a/c and nominal a/c.

Based on such rules of accounting, liabilities account, income account, profits and capital are always have a credit balance. Hence while preparing the trial balance, all such accounts are placed in the credit column of the trial balance.