Trail Balance Questions and Answers AP Inter 1st Year Accounts Chapter 10

Regular practice with AP Inter 1st Year Accounts Study Material Chapter 10 Trail Balance Questions and Answers helps students stay prepared for examinations.

AP Inter 1st Year Accountancy 10th Lesson Trail Balance Questions and Answers

I. Fill in the blanks

Question 1.
The statement which is prepared to verify the arithmetical accuracy of ledger accounts is called …..
Answer:
Trial Balance

Question 2.
All the assets should be recorded on the ……. side of the trial balance.
Answer:
Debit

Question 3.
Capital should be recorded on the ……. side of the trial balance.
Answer:
Credit

Question 4.
All expenses and losses will appear on the ………. side of a trial balance.
Answer:
Debit

Question 5.
All incomes and gains will appear on the ……. side of the trial balance.
Answer:
Credit

II. Very Short Answer Type Questions 

Question 1.
Define ‘Trial Balance’.
Answer:
“Trial Balance is a statement, prepared with the debit and credit balances of ledger accounts to test the arithmetical accuracy of the books.” – J.R. Batliboi
“A Trial Balance is a list of all the balances standing on the ledger accounts and cash book of a concern at any given date.” – Spicer and Peglar

Question 2.
Give the format of Trial Balance.
Answer:
Trial Balance of ……. as on ………..

Question 3.
What are the characteristics of the Trial Balance ?
Answer:
Characteristics of trial balance are :

1. It is a list of balances of all ledger accounts and the cash book.
2. It is just a statement and not an account.
3. It is prepared at the end of accounting year before preparing the final accounts.
4. It is always prepared on a particular date and not for a particular period.
5. It is not an account : It is only a statement which is prepared to verify the arithmetical accuracy of ledger accounts.

Question 4.
What are the methods of preparation of Trial Balance ?
Answer:
There are two methods to prepare trial balance.

1. Total Balances Method : Under this method total of debit side and total of credit side of each individual a/c is taken into trial balance. This method is not in use now.
2. Net Balances Method : Under this method, balance in each ledger a/c is taken into trial balance. All the ledger a/cs showing debit balances are put on the debit side of the trial balance and the accounts showing credit balances are put on the credit side.

Question 5.
What is suspense account.
Answer:
Sometimes, despite an accountant’s best efforts, the trial balance may not agree. In such circumstances, the difference between the debit and credit Totals should be transferred to an account called. Suspense Account. It is an imaginary account, opened and used as a temporary measure to make two sides of the trial balance agree.

III. Essay Answer Type Questions

Question 1.
What is Trial Balance ? How it is prepared ?
Answer:
Trial balance is a statement of balances/totals of accounts of a business concern and prepared to check the arithmetical accuracy of the books.
Preparation of Trial balance : The following points are to be kept in the mind while preparing the Trial Balances.

1. Draw the pro forma of trial balance with the title.
2. Trial balance is a statement; hence we need not use the words ‘to’ or ‘by’.
3. Show all types of assets in debit column.
4. Show all types of liabilities in credit column.
5. Show all types of expenses in debit column,
6. Show all types of incomes in credit column.
7. Show reserves and surpluses / reserve funds / provisions in credit columns.
8. Show intangible assets in debit column E.g. good will, patents, royalties
9. Show purchases and sales returns in debit column.
10. Show sales, purchase returns in credit column.

Question 2.
Explain the merits and demerits of Trial Balance.
Answer:
Merits :

1. It helps in ascertaining the arithmetical accuracy of ledger accounts.
2. It helps in detecting errors.
3. It helps to get a summary of the ledger accounts.
4. It helps in the preparation of final accounts.

Limitations :

1. Certain type of errors remain even when the trial balance tallies.
2. It is possible to prepare trial balance in which double entry book-keeping system is followed which is very expensive.
3. Even if some transactions are omitted the trial balance tallies.

Problems

Question 1.
From the following balances of Puneeth, prepare a trial balance as on 31.12.2024.

Solution:

Question 2.
Prepare a trial balance of Yashika as on 3 1.03.2024

Solution:

Question 3.
Prepare Navitha’s trial balance from the following

Solution:
Trial Balance of Yashika as on 31.03.2024

Question 4.
Prepare trial balance of Tripthi from the following

Solution:
Trial Balance of Navitha as on 31.03.2024

Question 5.
Prepare Pragna’s trial balance from the following

Solution:
Trial Balance of Tripthi as on 31.03.2024

Question 6.
Prepare trial balance

Solution:
Trial Balance of Pragna as on 31.03.2024

Question 7.
Prepare trial balance of Saraswathi from the following

Solution:
Trial Balance

Question 8.
Prepare trial balance of Omesh as on 31.12.2024

Solution:
Trial Balance of Saraswathi

Question 9.
From the following balances prepare trial balance of Hasini as on 31.03.2023

Solution:
Trial Balance of Omesh as on 31.12.2024

Question 10.
From the following prepare trial balance as on 31.03.24

Solution:
Trial Balance of Hasini as on 31.03.2023