what is a trial balance 619007

Aug 30, 2021 | Uncategorized

  1. What is a Trial Balance?
  2. What are the objectives of Trial Balance?
  3. What are the main advantages of a Trial Balance?
  4. State the principle on which the agreement of Trial Balance is based.
  5. Explain the term “Sundry Debtors.”
  6. What are the limitations of a Trial Balance?
  7. “The Trial Balance ensures arithmetical accuracy and not accounting accuracy” – why?
  8. Why do errors occur in the preparation of Trial Balance?
  9. Name the two main classification of errors.
  10. What do you mean by errors of principle? Give two examples.
  11. What are the two types of “errors of omission”?
  12. What are the types of “errors of commission”?
  13. Explain: (i) overcasting (ii) undercasting
  14. Give any four examples of errors which are disclosed by Trial Balance.
  15. Give any four examples of errors which are not disclosed by Trial Balance.
  16. What do you mean by “Suspense Account”?
  17. How will you close a “Suspense Account”?
  18. Mention the main three steps to be adopted to rectify an error.
  19. Mention the two important stages involved in the rectification process.
  20. How will you rectify the following:
    1. Short debit
    2. Excess debit