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A L.F B Credit Balance C None of the above
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Drawing account will always have a debit balance. Drawing account must be shown in the debit side of trial balance. Drawing is a personal withdrawal done by the proprietor. All personal drawings are debited to the drawing account.
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Q
1
Drawing account appears in ________ column of the trial balance.
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Q
2
In a trial balance, always the debit column should match with the credit column.
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Q
3
State true or false: 1) A Trial balance is an account.
2) A Trial balance is helpful for preparation of final accounts.
3) A Trial balance is most important document.
4) A Trial balance may be prepared on any date.
5) In Trial balance opening stock is recorded in credit balance column.
6) Both sides total of an account are taken in Gross Trial Balance.
7) Purchase account always shows debit balance.
8) A Trial balance is a List of Ledger balances.
9) A Trial balance does not ensure accounting accuracy.
10) A Trial balance shows only arithmetical accuracy.
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Q
4
If the sum of the debit column equals the sum of credit column in a trial balance, it indicates ______________________.
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Q
5
Asan accountant of a company, you are disappointed to learn that thetotals in your new trial balance are not equal. After going through acareful analysis, you have discovered only one error. Specifically,the balance of the Office Equipment account has a debit balance ofRs. 15,600 on the trial balance. However, you have figured out that acorrectly recorded credit purchase of pen-drive for Rs 3,500 wasposted from the journal to the ledger with a Rs. 3,500 debit toOffice Equipment and another Rs. 3,500 debit to creditors accounts.Answer each of the following questions and present the amount of anymisstatement : (a)Is the balance of the office equipment account overstated,understated, or correctly stated in the trial balance? (b)Is the balance of the creditors account overstated, understated, orcorrectly stated in the trial balance? (c)Is the debit column total of the trial balance overstated,understated, or correctly stated? (d)Is the credit column total of the trial balance overstated,understated, or correctly stated? (e)If the debit column total of the trial balance is Rs. 2,40,000 beforecorrecting the error, what is the total of credit column.
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