Trial Balance

A Trial Balance has no limitations -

• True

• False

One of the purposes of preparing a Trial Balance -

• to adjust assets and liabilities

• to provide financial information to external users

• to prove the mathematical equality of debits and credits in the ledger

• to write up the financial statements

Numerous mistakes can exist even though the Trial Balance totals are in agreement.

• True

• False

Which of the following errors is not disclosed in the trial balance?

• entries made to wrong side of the each account
• transactions omitted entirely or put in twice
• a transaction posted to only one account
• entries made in the wrong account but on the correct side.

Trial Balance is a ______.

• A list of all the ledger accounts and their balances extracted from the General Ledger

• Prepared on a given date, usually at the end of the financial period

• Prepared after identification and recording of source documents, but before preparation of Income Statement and Balance Sheet

• All of the above

The LAST step of Trial Balance is ___.

• Check that total debit amount = total credit amount Trial Balance is balanced.

• Extract all accounts with balances from General Ledger.

• List them down by indicating their account names.

• For each account, indicate the balance in either the debit or credit column.

• Total all amounts under debit column. Do the same for credit column.

Nature of Long-term borrowing (bank loan): ____.

• DR

• CR

Nature of Cost of sales: ____.

• DR

• CR

Nature of Cost of sales: ____.

• DR

• CR

Nature of Fixtures & fittings: ____.

• DR

• CR