Trial Balance Quiz

What is a Trial Balance?

Answer explanation

A trial balance is a list of debit and credit balances extracted from the ledger, including the balance of cash and bank columns of the cash book.

What is the purpose/objective of the trial balance?

Answer explanation

It checks the accuracy of the double-entries in the ledger

It facilitates the preparation of an Income Statement and a Statement of Financial Position

It helps you to find out mistakes and correct them

Which ledger balances are written on the debit side of the trial balance?

Answer explanation

Assets

Expenses

Which ledger balances are written on the credit side of the trial balance?

Answer explanation

Liabilities

Revenues

When is a trial balance prepared?

Answer explanation

The trial balance is prepared at the end of the specified accounting period.

What is used to prepare the trial balance?

Answer explanation

Ledger balances

The capital account of RPB Pharmacy has a balance of $35,000. On which side of the trial balance should this balance be recorded?

• Debit

• Credit

The books of RPB Pharmacy show a balance of $30,000 on the account of Simpson Motors, a creditor. On which side of the trial balance should this balance be recorded?

• Debit

• Credit

• It should not be recorded

Identify the group of accounts that are recorded on the debit side of the trial balance.

• Sales, Purchases, Returns Inwards, Drawings

• Purchases, Returns Outwards, Drawings, Rent Paid

• Furniture, Purchases, Rent Paid, Returns Inwards

• Capital, Rent Received, Furniture, Purchases

Identify the group of accounts that are recorded on the credit side of the trial balance.

• Rent Received, Sales, Inventory, Cash

• Cash, Accounts Payable, Accounts Receivable, Capital

• Capital, Drawings, Accounts Payable, Sales

• Sales, Capital, Accounts Payable, Rent Received