Accounting multiple choice questions on Trial Balance

Multiple Choice Questions on Trial Balance

TopicTrial Balance
PatternMultiple Choice Question
Total MCQs25

[1] Trial Balance is prepared on:

(a) End of the year

(b) A particular date

(c) For the period ending_

(d) Both “a” and “b”


[2] Balances of the Accounts are transferred to:

(a) Trial Balance

(b) Trading Account

(c) Profit &Loss Account

(d) Balance Sheet


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

(a) Balance Sheet

(b) Day Book

(c) Journal

(d) Trial.Balance


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

(a) Recording

(b) Summarizing

(c) Classifying

(d) Interpretation


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

(a) inventory and drawings

(b) sales and purchase return

(c) carriage inward and outward

(d) trade receivable and liability


[6] Trial Balance creates accuracy.

(a) principle

(b) arithmetical

(c) clerical

(d) none.


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

(a) An amount of purchase of 10,000 recorded in cr. Alc as ~ 1,000

(b) Customer account debited with the amount of cash received

(c) An Entry of debit of ~ 1,000 was credit with twice the amount.

(d) An Entry posted twice in the ledger.


[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

(c) Debit side exceeds by ~ 3,000

(d) Credit side exceeds by ~ 3,000


[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.

(c) It is adjusted in the Purchase Alc.

(d) None of these.


[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

(c) ~ 2,95,000

(d) ~ 2,75,000


[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.


[12]ascertain the arithmetical accuracy of posting and balancing

(a) Cash Book

(b) Journal

(c) Trial Balance

(d) Bank Reconciliation Statement


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

(a) submissive

(b) inclusive

(c) exhaustive

(d) conclusive


[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 .


[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


[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


[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.


[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.


[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.


[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


[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

(c) ~ 14,50,000

(d) ~ 15,00,000


 [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

(c) Before or after preparation of Trial Balance

(d) After preparation of Final Accounts.


[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.

(c) wrong amount entered in the books

d) All the above


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

(a) submissive

(b) inclusive

(c) exhaustive

(d) conclusive


[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 than the credit side

(b) The debit side to be.~ 4,000 more than the credit side

(c) The credit side to be ~. 2,000 more than the debit side

(d) The credit side to be ~ 4,000 more than the debit side.


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