Self Studies
Self Studies
Self Studies
Self Studies

Trial Balance and Rectification of Errors Test 5

Result Self Studies

Trial Balance and Rectification of Errors Test 5
  • Score

    -

    out of -
  • Rank

    -

    out of -
TIME Taken - -
Self Studies

SHARING IS CARING

If our Website helped you a little, then kindly spread our voice using Social Networks. Spread our word to your readers, friends, teachers, students & all those close ones who deserve to know what you know now.

Self Studies Self Studies
Weekly Quiz Competition
  • Question 1
    1 / -0
    A Trial Balance facilitates smooth preparation of ______________.
    Solution
    Final accounts comprises of all the closing balances of all the ledgers posted from the journal entries passed.
    Trial balance is a statement showing arithmetic accuracy and summarised balances.
    These accounts form the base for finalization of the year ending figures and helps in preparation of final accounts to determine the profitability and the financial position of the entity.
  • Question 2
    1 / -0
    Total of all debit balance must be _____________ to the total of all credit balances.
    Solution
    Under the double entry system of accounting, every transaction has dual aspects  i.e. debit and credit. Thus, the total of debit balances must equal to the total of credit balances of the Trial balance to ensure the arithmetical accuracy of accounts.
  • Question 3
    1 / -0
    A Trial balance is a _________.
    Solution
    Trial Balance is prepared by taking the balances of all ledger account. It is a list of all ledger account. Trial balance is prepared to check the arithmetical accuracy.  Trial balance is a statement of all ledger balances. 
  • Question 4
    1 / -0
    Drawing account appears in ________ column of the trial balance.
    Solution
    Drawing is a personal withdrawal done by the proprietor. All personal drawings are debited to the drawing account. 
    Drawing account will always have a debit balance. Drawing account must be shown in the debit side of trial balance. 
  • Question 5
    1 / -0
    A Trial balance provides the base for preparation of __________.
    Solution
    Trial Balance is prepared by taking the balances of all ledger account. It is a list of all ledger account. Trial balance is prepared to check the arithmetical accuracy.  If trial balance agrees, it provides the base to prepare the final accounts. Financial statements are prepared using all these ledger balances in the trading, profit & loss account and the balance sheet.
  • Question 6
    1 / -0
    A list of balances of all the accounts in ledger is called _________.
    Solution
    Trial balance is a statement of all debits and credits in a double-entry account book. It shows the balances of all accounts on a particular date. It helps in verifying the arithmetic accuracy of the double entry system used for the accounts. Trading and profit and loss account is used to determine the profitability of the business whereas financial position is determined by the balance sheet.
  • Question 7
    1 / -0
    Goodwill account appears on _____________ side of Trial Balance.
    Solution
    Fixed assets are classified as tangible and intangible assets. All the assets will always show a debit balance.
    Goodwill is a type of an intangible fixed asset which is shown in the balance sheet under the fixed assets. Such an item will always show a debit balance as it is an asset for the business entity.
  • Question 8
    1 / -0
    ___________is prepared from the balance in ledger accounts.
    Solution
    A trial balance is a statement showing the balances, or total of debits and credits, of all the accounts in the ledger with a view to verify the arithmetical accuracy of posting into the ledger accounts. Trial balance is an important statement in the accounting process which shows final position of all accounts and helps in preparing the final statements. The task of preparing the statements is simplified because the accountant can take the account balances from the trial balance instead of looking them up in the ledger. It is normally prepared at the end of an accounting year. However, an organisation may prepare a trial balance at the end of any chosen period, which may be monthly, quarterly, half yearly or annually depending upon its requirements.
  • Question 9
    1 / -0
    Trial Balance is a proof of __________ accuracy.
    Solution
    The objective of preparing the trial balance is to check the accuracy of posting. If trial balance agrees, it proves that books are arithmetically accurate. 
    Hence, Trial Balance is a proof of arithmetical accuracy. 
  • Question 10
    1 / -0
    For which type of error, journal entry is required for rectification? 
    Solution
    Accounting errors are classified as:
    1) Error of Principle
    2) Error of omission
    3) Error of commission
    4) Compensating error

    If the error is affected two sides of the account, a rectification entry is required to pass the correct entry. 
Self Studies
User
Question Analysis

  • Correct -

  • Wrong -

  • Skipped -

My Perfomance
  • Score

    -

    out of -
  • Rank

    -

    out of -
Re-Attempt Weekly Quiz Competition
Self Studies Get latest Exam Updates
& Study Material Alerts!
No, Thanks
Self Studies
Click on Allow to receive notifications
Allow Notification
Self Studies
Self Studies Self Studies
To enable notifications follow this 2 steps:
  • First Click on Secure Icon Self Studies
  • Second click on the toggle icon
Allow Notification
Get latest Exam Updates & FREE Study Material Alerts!
Self Studies ×
Open Now