16.3. Trial Balance

Try these first

1. 1.

   What is a Trial Balance?

   Hint

   Think about its purpose in verifying accuracy.

2. 2.

   What types of accounts are included in a Trial Balance?

   Hint

   Consider what you record in the ledger.

3. 3.

   What is the primary purpose of a Trial Balance?

   • To summarize financial performance
   • To ensure debits equal credits
   • To record transactions

   Hint

   Consider its role in verifying mathematical correctness.

4. 4.

   True or False: A Trial Balance can catch all types of accounting errors.

   • True
   • False

   Hint

   Reflect on what types of errors you learned about that it doesn't catch.

5. 5.

   You're given the following account balances: Inventory A/c: ₹15,000 (Debit), Accounts Payable A/c: ₹10,000 (Credit), Account Receivable A/c: ₹5,000 (Debit). Prepare the Trial Balance and determine if it balances.

   Hint

   Check each account and confirm the totals!

6. 6.

   If the Trial Balance has a total of ₹30,000 for Debits and ₹25,000 for Credits, identify possible reasons before correcting the entries.

   Hint

   What types of errors can lead to this mismatch?