Question
What is a Trial Balance?
✓
Answer
After posting the transactions in the accounts and balancing them, a statement is prepared to show separately the debit and credit balances. Such a statement is known as Trial Balance. The total of the debit side of Trial Balance should be equal to that of its credit side. This is based on the Dual Aspect Concept which states for every debit there is a corresponding credit of equal amount.
Need a full question paper?
Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.
Explore more
Similar questions
What is an Account?
Pass the Opening Entry from the following Balance Sheet as at 31st March, 2019 of Vikas:
Is a trial balance conclusive proof of the accuracy of the books of accounts?
Prepare the Vouchers to be recorded in the books of M/s Computer Aids:
Transactions marked with * are subject to levy of CGST and SGST @ 6% each.
|
2019
|
Particular
|
₹
|
|
Jan-1
|
Bought computer for resale for cash vide Cash Memo No. 512*
|
7,200
|
|
Jan-8
|
Salary paid for the month of December, 2018
|
10,000
|
|
Jan-10
|
Sold computer for cash vide Cash Memo No. 64*
|
12,000
|
|
Jan-15
|
Withdraw cash from bank for office use vide cheque No. 13456
|
1,700
|
What is a Bank Reconciliation Statement? Explain the purpose of preparing such a statement.
Why Cash Book is called a book of original entry?
Show the accounting equation on the basis of the following transactions and present a Balance Sheet of the last new equation balance:
| (₹) | ||
| i. | Mohan commenced business with | 70,000 |
| ii. | Purchased goods on Credit | 14,000 |
| iii. | Withdrew for private use | 1,700 |
| iv. | Purchased goods for Cash | 10,000 |
| v. | Paid wages | 300 |
| vi. | Paid to Creditors | 10,000 |
| vii. | Sold goods on Credit at par | 15,000 |
| viii. | Sold goods for Cash (cost price was ₹ 3,000) | 4,000 |
| ix. | Purchased furniture for cash | 500 |
Depreciation cannot be provided in case of loss in a financial year. Comment.
Explain the following:
Consistency Concept.
Consistency Concept.
Enter the following Transactions in the Journal of Mudit:
|
2017
|
|
₹
|
|
Jan.01
|
Commenced business with cash
|
1,75,000
|
|
Jan.01
|
Building
|
1,00,000
|
|
Jan.02
|
Goods purchased for cash
|
75,000
|
|
Jan.03
|
Sold goods to Ramesh
|
30,000
|
|
Jan.04
|
Paid wages
|
500
|
|
Jan.06
|
Sold goods for cash
|
10,000
|
|
Jan.10
|
Paid for trade expenses
|
700
|
|
Jan.12
|
Cash received from Ramesh
|
29,500
|
|
|
Discount allowed
|
500
|
|
Jan.14
|
Goods purchased for Sudhir
|
27,000
|
|
Jan.18
|
Cartage paid
|
1,000
|
|
Jan.20
|
Drew cash for personal use
|
5,000
|
|
Jan.22
|
Goods use for house hold
|
2,000
|
|
Jan.25
|
Cash paid to Sudhir
|
26,700
|
|
|
Discount allowed
|
300
|