Ledger and Trial Balance

The trial balance is a statement which helps us to

• Discover all types of errors

• Determine the arithmetical accuracy of postings

• Prove that transactions have been recorded in the

  proper accounts

• Prove that transactions have been correctly analyzed

Which of the following statements describes real

accounts?

• The return accounts which appears in the Trading

  Account

• Purchases and Sales Accounts which appears in the

  Trading and Profit and Loss Account.

• Records of property which appear in the Balance Sheet

• All debtors’ and creditors’ accounts shown in the

  subsidiary ledgers

Which of the following sets of accounts will contain

only debit entries in the Trial Balance?

• Discount received, stock, purchases returns, salaries

• Sales returns, wages paid, machinery, discount

  allowed

• Wages due, rent, sales returns, discount allowed

• Salaries due, discount received, sales returns, stock

Which of the following are nominal accounts?

I. Wages

II. Creditors

III. Purchases

IV. Furniture

• I and III only

• I and IV only

• II and III only

• II and IV only

Which of the following accounts does NOT have a

credit balance

• Accounts Payable

• Rent Received

• Bad debts recovered

• Purchases

Under which of the following conditions would a

trial balance still balance?

I. A transaction was completely left out.

II. Both a debit and credit entry were overstated by the

same amount

III. A debit entry was left out.

IV. Both a debit and a credit entry were understated by

the same amount.

• I, II and III only

• I, II and IV only

• I, III and IV only

• II, III and Iv only

Doctor Doom is a weapon maker. He buys 100

kilos of vibranium from U. Klaw for P1,000,000 cash.

The correct double entry for this transaction in

Dr. Doom's ledger would be to

• Dr. Purchases

  Cr. Accounts Payable

• Dr. Purchases

  Cr. Cash

• Dr. Cash

  Cr. Accounts Receivable

• Dr. Accounts Receivable

  Cr. Sales

Closing entries are prepared for

• Real Accounts only

• Personal and Real Accounts

• Nominal and Drawings Accounts

• Nominal and Personal Accounts

Which of the following gives a correct definition of

the ‘double entry’ system of accounting?

• Every account is recorded twice.

• Every transaction is concerned with at least two

  accounts

• Every entry is recorded twice

• Every two entries are recorded in the same account

Which of the following BEST describes a trial

balance

I. A list of balances of accounts

II. A financial statement

III. An account

IV. A check on the accuracy of the double entry system

• I and II only

• I and IV only

• I, II and III only

• I, III and IV only