MCQ on Trial Balance

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Accounting multiple choice questions on Trial Balance | MCQ on Trial Balance

Trial Balance is a statement which accounts all the balances of the Personal account, Real account and Nominal account regardless of either Revenue or Capital A/c. It comprises of 2 columns viz., debit and credit. If the transactions are documented systematically by providing dual-sided effect and later posted methodically, then the total of both the columns would be similar.

Trial Balance is a part of the accounting process, that shows the debit and credit balances received from the ledger accounts. Whereas, the Balance Sheet is the statement that shows the company’s financial status by reviewing the capital, liabilities, and assets on a particular date.

Given below are important MCQs on Trial Balance to analyse your understanding of the topic. The answers are also given for your reference.

[11] Salaries paid ~ 4,500 is shown in credit side of trial balance. In the total of trial balance the debit side will be short by ________ _

(a) short by ~ 4,500

(b) excess by ~ 4,500

(c) ‘short by ~ 9,000

(d) excess by ~ 9,000.

ANSWER-(c)

[12]ascertain the arithmetical accuracy of posting and balancing

(a) Cash Book

(b) Journal

(c) Trial Balance

(d) Bank Reconciliation Statement

ANSWER-(c)

[13] Agreement of Trial Balance is not a ___ proof of accuracy.

(a) submissive

(b) inclusive

(c) exhaustive

(d) conclusive

ANSWER-(d)

[14] Trial Balance is a statement which shows the or the of all the accounts.

(a) opening balances, closing balances

(b) debit balances, credit balances

(c) positive balances, negative balances

(d) balances, totals .

ANSWER-(b)

[15] Ledger balances of Mr. Nagarjun traders are as follows: Capital ~9,00,000, Computer ~1 ,30,000, Machinery ~4,50,000, office furniture ~1 ,50,000, Investments ~3,00,000, salaries ~2,10,000 sales ~16,OO,000, postage ~1 ,20,000, freight. ~1 ,21,000, Purchases ~9, 15,000, Rent ~28,000, cash in hand N8,000, Bank overdraft ~20,000, Creditor ~1 ,00,000, Debtor ~1 ,48,000. The total of Trial Balance will be:

(a) ~ 26,40,000

(b) ~ 24,99,000

(c) ~ 26,20,000

(d) ~ 25,72,000

ANSWER-(c)

[16] All the following statements’ ale correct except ________

(a) trial balance is a statement not an account.

(b) trial balance is always prepared at the end of the financial year.

(c) agreement of Trial Balance is not a conclusive proof of accuracy.

(d) trial balance will tally even if an entry is posted twice in the ledger

ANSWER-(b)

[17] A suspense account facilitates the preparation of even the has not been tallied.

(a) trial balance, financial statements

(b) ledger, trial balance

(c) trial balance, ledger

(d) financial statements, trial balance.

ANSWER-(d)

[18] 2000 received by way of commission and entered correctly in cash book, is posted to the debit side of the commission account. In the trial balance:

(a) The debit total will be more by ~ 2000 than the credit total.

(b) The debit total will be more by ~ 4000 than the credit total.

(c) The credit total will be more by ~ 4000.

(d) The credit total will be more by ~ 2000.

ANSWER-(b)

[19] The trial balance is prepared for:

(a) Locating clerical errors

(b) Locating errors of principle

(c) Locating errors of omission

(d) All of the above.

ANSWER-(a)

[20] Ram started business with ~1 0,000 Cash and ~ 2,000 furniture. Sales amounted to ~ 50,000 including ~5,000 cash sales. ~ ‘10,000 Sales were outstanding at the end of the year. Purchase amounted to ~30,000 including ~ 10,000 cash purchases ~ 15,000 has been paid to suppliers. Expenses paid during the year ~ 19,300. Trial Balance total will be:

(a) ~ 67,000

(b) ~ 57,000

(c) ~ 62,000

(d) ~ 49,300

ANSWER-(a)