Which of the following is not a benefit for preparation of Trial balance?

To know the transactions which are omitted to be recorded

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To detect any mathematical errors that have occurred in the double-entry accounting system

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To know the totals of debits/ credits & identify mismatch if any

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Trial balance summarizes all the financial transactions of the business.

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Solution

The correct option is A
To know the transactions which are omitted to be recorded

It will not affect the trial balance because both the Debit and the Credit aspects of this transaction are not recorded. In other words errors in the records may or may not affect Trial Balance.

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Similar questions

Q. If the trial balance do not agree after transferring the balance of all ledger accounts including cash and bank balance and also errors are not located timely, then the trial balance is tallied by transferring the difference of debit and credit side to an account knows as_____________.

Give one word/term on phrase for each of the following statements.

1) Errors of incorrect entries or wrong posting.
2) Account to which difference in trial balance is transferred.
3) Errors which are committed by clerks.
4) Transaction remained to be recorded at all in the books of accounts.
5) Error in which the effect of one mistake is nullified by another mistake.
6) An entry passed to cancel wrong effects given and give correct effects to accounts affected.
7) Errors of calculation.
8) Error which affects the agreement of trial balance.
9) Error which are not disclosed by the trial balance.
10) Taking the Total more while closing books of accounts

Q. As an accountant for 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 creditor's 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 creditor's account overstated, understated or correctly stated in the trial balance?
(c) Is the debit column total of the trial balance overstated, understated or correctly stated?
(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?

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 for 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 an Rs. 3,500 debit to Office Equipment and another Rs. 3,500 debit to creditor's 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 creditor's 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?

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Which of the following is not a benefit for preparation of Trial balance?

The correct option is A To know the transactions which are omitted to be recorded It will not affect the trial balance because both the Debit and the Credit aspects of this transaction are not recorded. In other words errors in the records may or may not affect Trial Balance.

The correct option is A
To know the transactions which are omitted to be recorded

It will not affect the trial balance because both the Debit and the Credit aspects of this transaction are not recorded. In other words errors in the records may or may not affect Trial Balance.