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Advantages of Trial Balance

How do I know...

Question

How do I know if my trial balance is correct?

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Solution

If the value of the debit side equals the value of the credit side in a trial balance then we can say that the trial balance is correct.

Also read:

How to Prepare Trial Balance

Income and Expenditure Account Based on Trial Balance

MCQs on Trial Balance

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Similar questions

Q. Correct the following Trial Balance:


Debit Balances	₹	Credit Balances	₹
Opening Stock	1,02,600	Debtors	45,000
Returns Outward	48,000	Carriage Outwards	15,000
Salaries	36,000	Capital	1,65,600
Creditors	84,000	Machinery	54,000
Bank	1,35,000	Returns Inward	9,000
Carriage Inwards	18,000	Insurance Claim Received	12,000
Rent Received	9,000	Trade Expenses	18,000
Discount Allowed	6,000	Sales	4,20,000
Purchases	3,00,000	Building	60,000
Bills Payable	60,000
	7,98,600		7,98,600

Q. Prepare correct Trial Balance from the following Trial Balance in which there are certain mistakes:


Heads of Accounts	Dr. (₹)	Cr. (₹)
Cost of Goods Sold	1,50,000	...
Closing Stock	...	40,000
Debtors	...	60,000
Creditors	...	30,000
Fixed Assets	50,000	...
Opening Stock	60,000	...
Expenses	...	20,000
Sales	...	2,00,000
Capital	90,000	...

Total	3,50,000	3,50,000

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. The following is the Trial Balance prepared by an inexperienced accountant. Redraft it in a correct form and give necessary notes : −

TRIAL BALANCE
for the year ending 31st March, 2017

Particulars	Amount	Particulars	Amount
	₹		₹
Cash in Hand	5,200	Bank Overdraft	16,400
Plant & Machinery	75,000	Capital	50,000
Typewriter	6,400	Goodwill	8,000
Stock (1-4-2016)	13,100	Sundry Creditors	8,200
Purchases	84,100	Sales	1,60,000
Carriage Inwards	2,800	Return Inwards	2,400
Carriage Outwards	1,600	Drawings	2,120
Sundry Debtors	18,300	Investments	4,000
Bills Payable	12,000
Rent Paid	9,600
Wages	16,500
Advertisement	4,500
Discount Received	3,200
	2,52,300		2,51,120

Compensating errors do not effect the trial balance. Is the statement correct?

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