Mention Any Two Objectives of Preparing Trial Balance.

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Solution

The objectives of preparing trial balance are as follows:

To determine the accuracy of the ledger accounts.

To identify errors in recording of transactions

Help in the preparation of financial statements.

Also read:

How to Prepare Trial Balance

Income and Expenditure Account Based on Trial Balance

MCQs on Trial Balance

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Answer in only one sentence :

Mention the steps involved in preparation of Trial Balance.

What are the methods of preparing 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. Objective type questions.
Answer in one sentence only.

Can a trial balance be prepared under Single Entry System?

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

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