What is a trial balance example?

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Solution

A trial balance is a report run toward the finish of a bookkeeping period, posting the closure balance in each general ledger account. For instance, an accounts payable assistant records a Rupees 1000 supplier receipt with a debit to supply cost and a Rupees 1000 credited to the accounts payable under the head of the liability account.

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Q. Answer in only one sentence :

What is a Trial Balance?

What kinds of errors would cause difference in the trial balance? Also list examples that would not be revealed by a 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. Following Trial Balance is given but it is not correct. Prepare correct Trial Balance.


Debit Balances	Amount (₹)	Credit Balances	Amount (₹)
Building	3,00,000	Capital	3,68,000
Machinery	85,000	Furniture	28,000
Returns Outward	13,000	Sales	5,20,000
Bad Debts	14,000	Debtors	3,00,000
Cash	2,000	Interest Received	13,000
Discount Received	15,000
Bank Overdraft	50,000
Creditors	2,50,000
Purchases	5,00,000
	12,29,000		12,29,000

Q. What is a Trial Balance?

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