MCQ on Trial Balance
Table of Contents
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.
MCQ on Trial Balance
| Topic | Trial Balance |
| Pattern | Multiple Choice Question |
| Total MCQs | 25 |
[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
ANSWER-(b)
[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.
ANSWER-(b)
[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
ANSWER-(d)
[24] Agreement of Trial Balance ensures arithmetical accuracy, but is not a proof of accuracy.
(a) submissive
(b) inclusive
(c) exhaustive
(d) conclusive
ANSWER-(d)
[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.
ANSWER-(b)
[26]. Trial balance is used to check the accuracy of
A) Balance sheet balances
B) Ledger accounts balances
C) Cash flow statement balances
D) Income statement balances
Answer: B
[27]. In the books of account if a transaction is completely deleted, will it affect the trial balance?
A) No
B) Yes
C) A transaction cannot be omitted
Answer: A
[28]. What is used in preparing trial balance?
A) Specialised Journals
B) Balance Sheet
C) Ledger Accounts
D) General Journal
Answer: C
[29]. What is the trial balance used?
A) It is a financial statement
B) It records balances of a balance sheet
C) It doesn’t contribute to the accounting cycle
D) It records balances of accounts
Answer: D
[30]. When debit balance is equal to credit balance then the trial balance means
A) Account balances are correct
B) Mathematically Capital+Liabilities=Assets
C) No mistake in recording transactions
D) No mistake in posting entries to ledger accounts
Answer: B
