Account 1 Marks Question

1. It is a list of balances of all Ledger Accounts and Cash Book.
2. It can be prepared on any date.

Accounts which do not show balance are not considered while preparing the Trial Balance by Balance Method.

Trial Balance is a statement of accounts which appears in the Ledger and Cash Book showing either the balances or the total amounts of debit and credit items.

It facilitates the preparation of final accounts by making available the balances of a the accounts at one place.

The main objective of preparing a Trial Balance is to verify the arithmetical correctness of accounting entries.

The main objective of preparing a Trial Balance is to verify the arithmetical accuracy of accounting entries.

Closing Stock is shown in the Trial Balance when the adjusting entry for Closing Stocks is passed in the books of account. It means that closing stock is adjusted against the purchases.

Yes, Trial Balance facilitates the preparation of Final Accounts by making available the balances of all the accounts at one place.

Trial Balance is not an account. It is a statement which shows the names and balances of all the accounts in the Ledger and Cash Book of an enterprise at any given date.

A Trial Balance essentially proves the arithmetical correctness of the books of account. If totals of both the sides of a Trial Balance match then it is proved that books are at least arithmetically correct.