Chapter 13 : Trial Balance

I. Very Short/ Multiple Choice Questions:-

1. Which item shows a debit balance in Trial Balance?
(a) Purchase Return (b) Salary outstanding
(c) Sales (d) Prepaid expenses.
2. An Asset account shows a
(a) Credit Balance (b) Debit Balance
(c) Debit or Credit Balance (d) None of these.

3. Preparation of Trial Balance is:

(a) Compulsory (b) Optional (c) Compulsory or optional (d) None of these.

4. Trial Balance shows

$$$
(a) Only credit balance (b) Only debit balance (c) both debit and credit balance (d) None of them.
5. Trial Balance is prepared from
a) Ledger (b) Ledger and Cash Book (c) Ledger and Journal (d) None.

II. State whether the following statements are true or false:

6. Trial Balance is an Account not a Statement.
7. Opening stock does not appear in Trial Balance.
8. Closing stock appear in Trial Balance .
9. Trial Balance is prepared for a Particular period.
10. Trial Balance is a part of the Ledger.
III. Short Answer Type Questions / Fill in the blanks :
11. Trial Balance facilitates the preparation of Final Accounts. Is it correct? Give reason.
12. State importance of Trial Balance?
13. When is Closing Stock shown in the Trial Balance?.
14. Trial Balance is not a part of the Double Entry system of _________ .
15 ______ are prepared from Trial Balance.
III. Higher Order Thinking Skills (HOTS) /Long Answer Type Question: -
16. What is main objective of preparing Trial Balance?
17. What is Trial Balance. Give two features of Trial Balance.
18. Prepare a Trial Balance from the following items
Capital Rs 24,000 Building Rs 12,000
Opening stock Rs 8500 Return Inwards Rs 1900
Furniture Rs 2600 Return Outwards Rs 350
Purchases Rs 8950 Trade Expense Rs 1000
Cash Rs 7300 Discount Received Rs 970
Carriage Rs 300 Salary Rs 3000
Sales Rs 22500 Office rent Rs 2270

19. Discuss the Methods of Preparation of a Trial Balance?

20. From the following information draw up a Trial Balance in the Books of Radhey.
Capital A/c Rs 20,000, Debtors A/c Rs 3,000, Fixed Assets A/c Rs 19,200, Sales A/c 11,000, Returns
Outward Rs 100, Bills Payable Rs 800, Bank overdraft Rs 1100, Opening Stock Rs 1500, Creditor 3000,
Purchase 7000, Return Inward Rs 200, Wages and Salaries 3000, Bill receivable 1500, Rent 600.