Mcq on trial balance

COMMERCE DADA YT

[1] Trial Balance is prepared on:

(a) End of the year. (b) A particular date

[2] Balances of the Accounts are transferred to:

(a) Trial Balance. (b) Trading Account

[3] A list which contains balances of accounts to know whether the debit and credit balances are matched.

(a) Balance Sheet. (b) Day Book

[4] Which of the following is not a process in the preparation of a Trial Balance?

(a) Recording(b) Summarizing

[5] Which of the following in Trial Balance is contradictory to each other? ___________ .

(a) inventory and drawings. (b) sales and purchase return

[6] Trial Balance creates accuracy.

(a) principle. (b) arithmetical

[7] Which of the following will not affect the agreement of Trial Balance?

(a) An amount of purchase of 10,000 (b) Customer account debited with

recorded in cr. Alc as ~ 1,000. the amount of cash received

credit with twice the amount.

[8] Bhandari’s trial balance was showing difference of ~ 5,000 (debit side exceeds). While checking of total sales register, he found that the total is over-cast by ~ 2,000. After correction in sales register what would be the difference in his trial balance.

(a) Debit side exceeds by ~ 7,000. (b) Debit side exceeds by ~ 5,000

[9] Closing stock in the trial balance implies that.

(a) It is already adjusted in the opening stock.(b) It is adjusted in Sales Alc.

[10] Opening and Closing Balance of Debtors A/c were ~30,000 and 40,000 respectively Cash collected from the debtors during the year was ~ 2,40,000. Discount allowed to debtors for timely payment amounted to ~ 15,000 an’d bad debts written off were ~ 10,000. Goods sold on credit were:

(a) ~ 2,55,000. (b) ~ 2,45,000

Answer:

1.B , 2.A , 3.D , 4.D , 5.D , 6.D , 7.A , 8.C , 9.A , 10.D.

[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

[12]ascertain the arithmetical accuracy of posting and balancing

(a) Cash Book. (b) Journal

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

(a) submissive. (b) inclusive

[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

[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

[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.

conclusive proof of accuracy. entry is posted twice in the ledger

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

(a) trial balance, financial statements. (b) ledger, trial balance

[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. (b) The debit total will be more by ~ 4000

than the credit total. than the credit total.

[19] The trial balance is prepared for:

(a) Locating clerical errors. (b) Locating errors of principle

[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

Answer:

11.C , 12.C , 13.D , 14.B , 15.C , 16.B , 17.D , 18.B , 19.A , 20.A..

[21] Given below are the ledger balances of a professional firm: Capital ~ 4,00,000, Computer ~ 25,000, Air Conditioner and Furniture ~ 1,00,000, fixed deposits ~ 2,00,000, Salaries ~ 8,OO, OOO, Fees received ~ 12,00,000. Travelling expenses ~ 1,50,000, Rent and office expenses ~ 2,40,000, Cash Balances ~ 1,BO,000, Bank Overdraft ~ 95,000. The total of the Trial Balance will be:

(a) ~ 16,00,000. (b) ~ 16,95,000

[22] Suspense Account is used to rectify those errors which have been located:

(a) Before preparation of Trial Balance. (b) After preparation of Trial Balance

[23] Which of the following errors is not revealed by the trial balance?

(a) Wrong amount entered in the books of original entry.(b) Wrong amount entered in the sides bill.

[24] Agreement of Trial Balance ensures arithmetical accuracy, but is not a proof of accuracy.

(a) submissive. (b) inclusive

[25] If a purchase return of ~ 2,000 has been wrongly posted to the debit of the sales returns account,. But has correctly been entered in· the suppliers account, the total of the trial balance would show:

(a) The debit side to be ~ 2,000 more. (b) The debit side to be.~ 4,000 more

than the credit side. than the credit side

than the debit side. than the debit side.

[26] Which of the following errors will not affect the Trial Balance.

a) Wrong balancing of an accountb) Writing an amount in the wrong account but on the correct side

c) Wrong totaling of an accountd) None of the above

[27] Which of the following is not the main objective of preparing a

Trial Balance ?

a) To check arithmetical accuracyb) To prepare final accounts

c) To have comparative study of each accountd) To present trial balance in court as a proof of transaction

[28] Which of the following errors will affect the Trial Balance?

a) Repairs to buildings have been. b) The total of purchases journal

debited to building account is Rs. 10,000 short

c) Carriage paid on new machinery has d) None of the above

been debited to the carriage account.

[29] Which of the following errors will be disclosed by Trial Balance?

a) Error of complete omissionb) Wrong casting

c) Compensating errord) Error of Principles

[30] Which of the following errors will not be disclosed by TrialBalance?

a) Error of complete ommissionb) Posting of wrong amount

c) Posting an amount twice in an accountd) Posting to the wrong side of an account

Answer:

21.B , 22.B , 23.D , 24.D , 25.B , 26.B , 27.D , 28.B , 29.B , 30.A.

31. Trial balance is used to check the accuracy of

(a) Balance sheet balances. (b) Ledger accounts balances

32. In the books of account if a transaction is completely deleted, will it affect the trial balance?

(a) No. (b) Yes

33. What is used in preparing trial balance?

(a) Specialized Journals. (b) Balance Sheet

34. What is the trial balance used?

(a) It is a financial statement. (b) It records balances of a balance sheet

35. When debit balance is equal to credit balance then the trial balance means

(a) Account balances are correct. (b) Mathematically Capital+Liabilities=Assets

36. When is trial balance prepared?

(a) At the end of an accounting period. (b) At the end of a year

37. Which items influence the trial balance agreement?

(a) Deposit in transit. (b) Compensating errors

38. When credit balances = debit balances, the trial balance check and shows ____________ . It also indicates that there were no errors made during posting and recording and posting.

(a) Understatements of Balances. (b) Errors of Commission

39. Which of the following account with normal balance is shown at the debit side of a trial balance?

(a) Creditors account. (b) Unearned income account

40. In trial balance, which accounts with normal balance is recorded at the credit side?

(a) Bank account. (b) Equipment account

Answer:

31.B , 32.A , 33.C , 34.D , 35.B , 36.A , 37.D , 38.C , 39.D , 40.D.

41. The equality of debits and credits is tested periodically by preparing a?

(a) Income Statement. (b) General Journal

42. Which of the following best describes a Trial balance?

(a) Shows all the entries in the books. (b) It is a list of total / balances of books

43. Preparation of Trial Balance helps to deduction of?

(a) Error of Principle. (b) Clerical Errors

44. For which of the following accounts is the normal balance a debit?

(a) Rent Payable. (b) Unearned Rent Revenue

45. The Trial balance?

(a) Is formal financial statement. (b) Is used to prove that there are no

errors in the journal or ledger

in the chart of accounts. each account in active use

46. Types of trial balance are?

(a) 1. (b) 2

47. Which one of the following could not be classified as revenue?

(a) Goods sold for cash. (b) Sales on credit

48. Which most important reason for producing a trial balance prior to preparing the final accounting is?

(a) It confirms the accuracy (b) It provides all the figures necessary

of the ledger accounts. to prepare the final accounts

debit and credit entries of an equal value. any adjustments required

49. Suspense account in the trial balance is entered in the?

(a) Trading A/c. (b) Profit and loss A/c

50. Wages paid to workers for the installation of new Machinery should be debited to?

(a) Wages Account. (b) Machinery Account

Answer:

41.C , 42.B , 43.B , 44.D , 45.D , 46.C , 47.D , 48.C , 49.C , 50.B.

51. The type of account with a normal credit balance is?

(a) An asset. (b) An expense

52. Which one of the following account would usually have a debit balance?

(a) Account Payable. (b) Cash

53. Which account has usually debit balance?

(a) Owner Equity. (b) Purchase

54. A Trial balance which shows equal totals for both debit and credit columns?

(a) Shows that there must be more than (b) Shows that the bookkeeping

one error within the bookkeeping system. system is free of errors

errors may still be present in the bookkeeping system. within the bookkeeping system

55. Which of the following accounts normally has credit balance?

(a) Wages Outstanding. (b) Motor vehicles

56. Why does a business prepare a Trial Balance?

(a) To calculate the profit and loss. (b) To check the cash and bank balance

57. Is it true that the trial balance totals should agree?

(a) Yes, always. (b) No, because it is not a balance sheet

extracted at the year end. reasons why they differ

58. The arithmetical accuracy of books of account is verified through?

(a) Journal. (b) Trial Balance

59. Ahmed gives a cash discount of 40 to a customer. The discount is credited to the discounts allowed account. The effect of recording the discount in this way is that profit will be?

(a) Understated by 80. (b) Overstated by 80

60. A Trial balance is a?

(a) Real account. (b) Nominal account

Answer:

51.D , 52.B , 53.B , 54.C , 55.A , 56.C , 57.A , 58.B , 59.B , 60.D.

61. A trail balance is prepared

(a) after preparation financial statement. (b) after rewarding transactions in subsidiary books

have been balanced

62. Trial balance shows the

(a) final position of accounts. (b) standard position of accounts

63. Trial balance is considered as the connecting link between accounting records and preparation of financial statements. It provides a basis for

(a) auditing accounting reports. (b) accuracy of the ledger account

64. Agreement of trail balance is affected by

(a) One sided errors only. (b) Two sided errors only

65. What will be the effect on trial balance if ₹ 2,000 received as rent and correctly entered in the cash book but not posted to rent account?

(a) Debit side of trail balance will exceed by ₹ 2,000. (b) Debit side of trail balance will decrease by ₹ 2,000

66. If the trail balance agrees, it implies that

(a) there is no error in books. (b) there may be two sided errors in the book

errors in the books

67. Which is not trail balance method?

(a) Balance method. (b) Total method

68. under which method of trail balance, the balance of each account is extracted and written against each account?

(a) Balance method of trail balance. (b) Total method of trial balance

69. Trail balance can be prepared under balance method, only when

(a) all the entries are made in journal. (b) all the subsidiary books are maintained

transferred to financial accounts

70. A trader has prepared the trial balance and total doesn’t tie. Which approach the trader should follow?

(a) Firstly, he should recheck all the ledger. (b) He should recheck the total of trail balance

Answer:

61.D , 62.A , 63.C , 64.A , 65.A , 66.B , 67.D , 68.A , 69.C , 70.D.

D. A. C. A. A. B. D. A. C. D.

71. Balance method is the most commonly used method of preparing trial balance as it facilitates the preparation of Final account

a) All ledger accounts are showcased. (b) Debit/ credit column are totaled

72. What kind of accuracy is tested by Trial balance-

(a) Theoritical. (b) Practical

73. How many methods are there for preparing Trial Balance –

(a) One. (b) Three

74. Which of the following is prepared on the basis of Trial Balance –

(a) Journal. (b) Ledger

75. Of the two sides of Trial balance does not tally, which Account is opened –

(a) Suspense Account. (b) Personal Account

76. The error which can be disclosed by Trial balance-

(a) Error of ommission. (b) Error of principal

77. If the trial balance does not tally after many efforts then following Account is opened –

(a) Purchase account. (b) Suspense account

78. A trial balance will not balance if

(a) A correct entry is posted twice. (b) Rs.5,000 received from Harish is

posted in the credit side of Hari

account and debited in cash account. is added into the purchases

79. A new machine was purchased for 1,00,000 but the amount was wrongly posted to Furniture account as 10,000 and cash received from debtors 11,200 was omitted to be posted to ledger. The difference in Trial balance due to such error will be:

(a) 90,000. (b) 78,800

80. Goods worth 750 were purchased from S & Co. but while posting wrong debit was given to R & Co. The total of credit side of the trial balance was 43,750. Assuming that this is the only error, the total of the debit side of the trial balance was

(a) 43,750. (b) 44,500

Answer:

71.D , 72.C , 73.C , 74.C , 75.A , 76.D , 77.B , 78.D , 79.B , 80.D.

81. Trial Balance contains _____ balance of all accounts

(a) Opening. (b) Closing

82. Which financial statement can be made from Trial balance?

a) Sales b) Purchases

c) Ledger. d) Balance sheet

83. A statement of debt & credit balance of account is ___________

(a) Ledger (b) Profit & loss account

84. Agreement of trial balance is affected by:

(a) One sided errors only. (b) Two sided errors only.

85. Which of the following is not an error of principle:

(a) Purchase of furniture debited to. (b) Repairs on the overhauling of second hand machinery

purchases account. 630 12,870 13,500 purchased debited to repairs account. 2020-21

86. Which of the following is not an error of commission:

(a) Overcasting of sales book. (b) Credit sales to Ramesh ` 5,000 credited to his account.

87. Which of following errors will be rectified through suspense account:

(a) Sales return book undercast by 1,000. (b) Sales return by Madhu 1,000 not recorded.

recorded as 100. through purchases returns book

88. If the trial balance agrees, it implies that:

(a) There is no error in the books. (b) There may be two sided errors in the book.

errors in the books. 215

89. If suspense account does not balance off even after rectification of errors it implies that:

(a) There are some one sided errors only in (b)Therearenomoreerrorsyettobelocated.

the books yet to be located.

yet to be located. two sided errors yet to be located.

90. If wages paid for installation of new machinery is debited to wages Account, it is:

(a) An error of commission. (b) An error of principle.

Answer:

81.A , 82.D , 83.C , 84.D , 85.C , 86.D , 87.A , 88.B , 89.A , 90.B.

91. Trial balance is:

(a) An account. (b) A statement.

92. A Trial balance is prepared:

(a) After preparation financial statement. (b) After recording transactions in subsidiary books.

accounts have been balanced

93.Ifatransactioniscompletelyomittedfromthebookofaccount,williteffecttheagreementoftrialbalance?

(a)Yes. (b)No

(c)Transactionscan

94.______isacommonbaseofpreparingatrialbalance.

(a)Ledgeraccounts. (b)GeneralJournal

(c)Specializedjournals. (d)Balancesheet

95.Whichofthefollowingistrueaboutthetrialbalance.

(a)Itlistsdownthebalancesofaccounts. (b)Itlistsdownthebalancesofabalancesheet

(c)Itisakindoffinancialstatement. (d)Itisnotapartofaccountingcycle

96.Debitbalance=creditbalanceinatrialbalanceindicatesthat.

(a)Noerrorinrecordingtransactions. (b)Noerrorinpostingentriestoledgeraccounts

(c)Accountbalancesarecorrect. (d)MathematicallyCapital+Liabilities=Assets

97.Trialbalanceispreparedtocheckaccuracyof

(a)Ledgeraccountbalances. (b)Balancesheetbalances

(c)Incomestatementbalances. (d)Cashflowstatementbalances

98.Whichofthefollowingaccountwithnormalbalanceisshownasthecreditsideofatrialbalance?

(a)Cashaccount. (b)Bankaccount

(c)Equipmentaccount. (d)Accruedexpensesaccount

99.Whichofthefollowingaccountwithnormalbalanceisshownasthedebitsideofatrialbalance?

(a)Rentincomeaccount. (b)Creditorsaccount

(c)Unearnedincomeaccount. (d)Cashaccount

100.Trialbalanceiscommonlyprepare(d)

(a)Frequentlyduringtheyear (b) At theendofanaccountingperiod

(c)Attheendofamonth. (d)Attheendofayear

Answer:

91.B , 92.D , 93.B , 94.A , 95.A , 96.D , 97.A , 98.D , 99.D , 100.B.

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Mcq on trial balance

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