Text Book Back Questions and Answers - Chapter 5 Trial Balance 11th Accountancy Guide Samacheer Kalvi Solutions - SaraNextGen [2024-2025]

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On April 24, 2024, 11:35 AM

Chapter 5 - Trial Balance - 11th Accounting Guide Samacheer Kalvi Solutions - Text Book Back Questions and Answers

 Text Book Back Questions and Answers

I. Multiple Choice Questions
Choose the Correct Answer

Question 1.
Trial balance is a ………………
(a) Statement
(b) Account
(c) Ledger
(d) Journal
Answer:
(a) Statement

Question 2.
After the preparation of ledger, the next step is the preparation of ………………
(a) Trading account
(b) Trial balance
(c) Journal
(d) Profit and loss account
Answer:
(b) Trial balance

Question 3.
The trial balance contains the balances of ………………
(a) Only personal accounts
(b) Only real accounts
(c) Only nominal accounts
(d) All accounts
Answer:
(d) All accounts

Question 4.
Which of the following is/are the objective(s) of preparing trial balance?
(a) Serving as the summary of all the ledger accounts
(b) Helping in the preparation of final accounts
(c) Examining arithmetical accuracy of accounts
(d) (a), (b) and (c)
Answer:
(d) (a), (b) and (c)

 Question 5.
While preparing the trial balance, the accountant finds that the total of the credit column is short by ₹ 200. This difference will be ………………
(a) Debited to suspense account
(b) Credited to suspense account
(c) Adjusted to any of the debit balance
(d) Adjusted to any of the credit balance
Answer:
(b) Credited to suspense account

Question 6.
A list which contains balances of accounts to know whether the debit and credit balances are matched is ………………
(a) Journal
(b) Day book
(c) Trial balance
(d) Balance sheet
Answer:
(c) Trial balance

Question 7.
Which of the following method(s) can be used for preparing trial balance?
(a) Balance method
(b) Total method
(c) Total and Balance method
(d) (a), (b) and (c)
Answer:
(d) (a), (b) and (c)

Question 8.
The account which has a debit balance and is shown in the debit column of the trial balance is ………………
(a) Sundry creditors account
(b) Bills payable account
(c) Drawings account
(d) Capital account
Answer:
(c) Drawings account

Question 9.
The difference of totals of both debit and credit side of trial balance is transferred to ………………
(a) Trading account
(b) Difference account
(c) Suspense account
(d) Miscellaneous account
Answer:
(c) Suspense account

Question 10.
Trial balance is prepared ………………
(a) At the end of the year
(b) On a particular date
(c) For a year
(d) None of the above
Answer:
(b) On a particular date

II. Very Short Answer Questions

Question 1.
What is a trial balance?
Answer:
“A trial balance is a statement, prepared with the debit and credit balances of the ledger accounts to test the arithmetical accuracy of the books”.

Question 2.
Give the format of trial balance.
Answer:
Trial balance is prepared in the following format under the balance method:

Question 3.
What are the methods of preparation of trial balance?
Answer:

1. Balanced method
2. Total method
3. Total and balance method

Question 4.
State whether the balance of the following accounts should be placed in the debit or the credit column of the trial balance:

1. Carriage outwards
2. Carriage inwards
3. Sales
4. Purchases
5. Bad debts vi. Interest paid
6. Interest received
7. Discount received
8. Capital
9. Drawings
10. Sales returns
11. Purchase returns

Answer:
Trial balance

III. Short Answer Questions

Question 1.
What are the objectives of preparing a trial balance?
Answer:
1. Test of arithmetical accuracy:

• Trial balance is the means by which the arithmetical accuracy of the book-keeping work is checked.
• When the totals of a debit column and credit column in the trial balance are equal, it is assumed that posting from subsidiary books, balancing of ledger accounts, etc. are arithmetically correct.
• There may be some errors that are not disclosed by a trial balance.

2. Basis for preparing final accounts: Financial statements, namely, trading and profit and loss account and balance sheet are prepared on the basis of a summary of ledger balances obtained from the trial balance.

Location of errors:

• When the trial balance does not tally, it is an indication that certain errors have occurred.
• The errors may have occurred at one or more of the stages of the accounting process, namely, journalizing or recording in subsidiary books, totaling subsidiary books, posting in ledger accounts, balancing the ledger accounts, carrying ledger account balances to the trial balance, totaling the trial balance columns, etc.
• Hence, the errors should be located and rectified before preparing the financial statements.

3. Summarised information of ledger accounts: The summary of ledger accounts is shown in the trial balance. Ledger accounts have to be seen only when details are required in respect of an account.

Question 2.
What are the limitations of trial balance?
Answer:
The following are the limitations of trial balance:

1. It is possible to prepare trial balance of an organisation, only if the double-entry system is followed.
2. Even if some transactions are omitted, the trial balance will tally.
3. Trial balance may tally even though errors are committed in the books of account,
4. If trial balance is not prepared in a systematic way, the final accounts prepared on the basis of trial balance may not depict the actual state of affairs of the concern.
5. Agreement of trial balance is not conclusive proof of arithmetical accuracy of entries made in the accounting records. This is because there are certain errors which are not disclosed by trial balance such as the complete omission of a transaction, compensating errors, and error of principle.

Question 3.
‘A trial balance is only a prima facie evidence of the arithmetical accuracy of records’. Do you agree with this statement? Give reasons.
Answer:
1. Yes. Trial Balance helps to check the arithmetical accuracy of the entries made in the accounting records.
In the computerized accounting system, once the transactions are recorded in the journals, all the other records are made simultaneously, i.e. ledger postings, trial balance, and final accounts.

2. Hence, arithmetic errors and errors in posting the entries from journal to ledger and further will not occur in computerized accounting.

3. When the double-entry system is followed, the totals of the debit and the credit columns of the trial balance must be equal. Thus, trial balance helps to check the arithmetical accuracy of entries made in the books of accounts.

IV. Exercises

Question 1.
Prepare a trial balance with the following information: (3 Marks)

Answer:
Trial balance

 Question 2.
Prepare the trial balance from the following information: (3 Marks)

Answer:
Trial Balance

 Question 3.
Prepare the trial balance from the following balances

Answer:
The trial balance

 Question 4.
Prepare the trial balance from the following balances 

Answer:
The trial balance

Question 5.
From the following balances of Aijun, prepare the trial balance

Answer:
Trial balance

Question 6.
Prepare the trial balance from the following balances

Answer:
Trial balance 

Question 7.
Prepare the trial balance from the following

Answer:
Trial balance of

Question 8.
From the following balance of Rohini, Prepare the trial balance

Answer:
Trial balance

Question 9.
Balan who has a car driving school gives you the following ledger balances. Prepare trial balance

Answer:
Trial balance

Question 10.
The following balances are extracted from the books 

Answer:
Trial balance

Question 11.
From the following balances, Prepare trial balance

Answer:
Trial balance

Question 12.
From the following balances extracted from the books

Answer:
Trial balance

Question 13.
Correct the following trail balance:

Answer:
The Corrected Trial balance

Textbook Case Study Solved

Question 1.
Mary runs a textile store. She has prepared the following trial balance from her ledger balances. Her trial balance does not tally. She needs your help to check whether what she has done is correct.

Solution:
There are some errors in Mary’s Trial balance. The corrected trial balance has been written below:
The Corrected Trial balance of Mary