Sales Debtors Interest received , , , , , , , , , , , , , , , Total , , , , Accountancy - Solution Redrafted Trial balance as on 31st March, Name of account Debit balance ` Credit balance ` Building Machinery Returns outward Bad debts Cash Discount received Bank overdraft Creditors Purchases Capital Fixtures Sales Debtors Interest received , , , , , , , , , , , , , , , Total , , , , Duality concept is applied in trial balance. This concept requires two aspects to be entered for every transaction. This means that there are at least two accounts involved for every transaction. Points to remember Trial balance is prepared on a particular date.
The date must be mentioned in the title of trial balance. A trial balance is prepared with the help of balances of ledger accounts. Trial balance is prepared to check the arithmetical accuracy of entries made in the books of accounts. Under balance method, the debit balances of the accounts are to be written in debit column, and the credit balances of the accounts are to be written in the credit column of trial balance.
Under balance method, if an account does not have a balance, it is excluded. If the trial balance does not tally, the difference between debit and credit columns should be taken to a temporary account called ‘suspense account’ if financial statements are to prepared immediately. Self-examination questions I Multiple choice questions Choose the correct answer . Trial balance is a (a) Statement (b) Account (c) Ledger (d) Journal Accountancy - .
After the preparation of ledger, the next step is the preparation of (a) Trading account (b) Trial balance (c) Journal (d) Profit and loss account . The trial balance contains the balances of (a) Only personal accounts (b) Only real accounts (c) Only nominal accounts (d) All accounts . Which of the following is/are the objective(s) of preparing trial balance? (a) Serving as the summary of all the