Chapter 10 - Trial Balance

Question:1
Prepare a Trial Balance with the following information:
Balance Balance
Sr. No Name of Account Sr. No Name of Account
( ) ( )
(i) Capital 2,00,000 (ii) Stock 70,000
(iii) Cash 1,80,000 ​(iv) Debtors 3,00,000
(v) Creditors 1,00,000 (vi) Bank Loan 1,50,000
(vii) Sales 3,00,000 (viii) Purchases 2,00,000
Solution:
Trial Balance
Debit Credit
S. No. Account Title Balance Balance
(Rs) (Rs)

60
(i) Capital 2,00,000
(ii) Stock 70,000
(iii) Cash 1,80,000
(iv) Debtors 3,00,000
(v) Creditors 1,00,000

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(vi) Bank Loan 1,50,000
(vii) Sales 3,00,000
(viii) Purchases 2,00,000
7,50,000 7,50,000

Question:2
ID
​Journalise the following transactions, post them into Ledger and prepare a Trial Balance:
U
2019 ( ) 2019 ( )
April 1 Mohan commenced business with cash 1,00,000 April 20 Received cash from Gopal 3,950
April 3 Bought goods 5,000 Discount Allowed 50
YG

April 4 Sold goods to Gopal 4,000 April 25 Paid wages 700

April 10 Bought goods from Ram 8,000 April 27 Paid to Ram in full settlement 7,700
April 15 Paid trade expenses 2,000 April 30 Paid rent 1,500
Solution:
Books of Mohan
Journal
D

Debit Credit
Date Particular L.F. Amount Amount
( ) ( )
2019
U

April 01 Cash A/c Dr. 1,00,000

To Capital A/c 1,00,000
(Commenced business with Cash)
ST

April 03 Purchases A/c Dr. 5,000

To Cash A/c 5,000
(Bought goods)

April 04 Gopal Dr. 4,000

To Sales A/c 4,000
(Goods Sold to Gopal)

April 10 Purchases A/c Dr. 8,000

To Ram 8,000
(Bought goods from Ram)

April 15 Trade Expenses A/c Dr. 2,000

To Cash A/c 2,000
(Paid trade expenses)
April 20 Cash A/c Dr. 3,950
Discount Allowed A/c Dr. 50
To Gopal 4,000
(Cash received from Gopal and discount
allowed)

April 25 Wages A/c Dr. 700

To Cash 700
(Paid Wages)

April 27 Ram Dr. 8,000

To Cash A/c 7,700
To Discount Received A/c 300

60
(Paid to Ram and discount received from
him)

April 30 Rent A/c Dr. 1,500

To Cash A/c 1,500

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(Paid Rent)

Cash Account
Dr. Cr.
Amount Amount
Date Particulars J.F. Date Particulars J.F.
( ) ( )
2019
April 01 Capital
April 20 Gopal
1,00,000
3,950
2019
April 03
April 15
April 25
ID
Purchases
Trade Expenses
Wages
5,000
2,000
700
U
April 27 Ram 7,700
April 30 Rent 1,500
Balance c/d 87,050
YG

1,03,950 1,03,950

Capital Account
Dr. Cr.
Amount Amount
D

Date Particulars J.F. Date Particulars J.F.

( ) ( )
2019 2019
April 30 Balance c/d 1,00,000 April 01 Cash 1,00,000
U

1,00,000 1,00,000
ST

Purchases Account
Dr. Cr.
Amount Amount
Date Particulars J.F. Date Particulars J.F.
( ) ( )
2019 2019
April 03 Cash 5,000 April 30 Balance c/d 13,000
April 10 Ram 8,000
13,000 13,000

Sales Account
Dr. Cr.
 Amount Amount
Date Particulars J.F. ( ) Date Particulars J.F. ( )

2019 2019
April 30 Balance c/d 4,000 April 04 Gopal 4,000
4,000 4,000

Gopals’ Account
Dr. Cr.
Amount Amount
Date Particulars J.F. Date Particulars J.F.
( ) ( )
2019 2019

60
April 04 Sales 4,000 April 20 Cash 3,950
April 20 Discount 50
Allowed
4,000 4,000

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Ram’s Account
Dr. Cr.
Amount Amount
Date Particulars J.F. Date Particulars J.F.
( ) ( )
2019
April 27 Cash
Discount
Received
2019 ID
7,700 April 10 Purchases
300
8,000
U
8,000 8,000
YG

Trade Expenses Account

Dr. Cr.
Amount Amount
Date Particulars J.F. Date Particulars J.F.
( ) ( )
2019 2019
D

April 15 Cash 2,000 April 30 Balance c/d 2,000

2,000 2,000
U

Discount Received Account

Dr. Cr.
ST

Amount Amount
Date Particulars J.F. Date Particulars J.F
( ) ( )
2019 2019
April Balance c/d 300 April 20 Ram 300
20
300 300

Wages Account
Dr. Cr.
Amount Amount
Date Particulars J.F. Date Particulars J.F.
( ) ( )
2019 2019
April 25 Cash 700 April 30 Balance c/d 700
 700 700

Discount Allowed Account

Dr. Cr.
Amount Amount
Date Particulars J.F. Date Particulars J.F.
( ) ( )
2019 2019
April 27 Gopal 50 April 01 Balance c/d 50
50 50

60
Rent Account
Dr. Cr.
Amount Amount
Date Particulars J.F Date Particulars J.F.
( ) ( )

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2019 2019
April 30 Cash 1,500 April 30 Balance c/d 1,500
1,500 1,500

S. No.
Trial Balance

Account Title L.F.

Debit
Balance
ID
Credit
Balance
U
( ) ( )
(i) Cash 87,050
(ii) Capital 1,00,000
YG

(iii) Sales 4,000

(iv) Trade Expenses 2,000
(v) Discount Received 300
(vi) Wages 700
(vii) Discount Allowed 50
(viii) Rent 1,500
(ix) Purchases 13,000
D

1,04,300 1,04,300
U

Question:3
​Prepare the Trial Balance of Ankit as on 31st March, 2019. He has omitted to open a Capital Account:
ST

Bank Overdraft 85,000 Purchases 4,45,000

Sales 8,10,000 Cash in Hand 8,500
Purchases Return 22,500 Creditors 2,15,000
Debtors 4,00,500 Sales Return 15,750
Wages 96,000 Equipment 25,000
Capital ? Opening Stock 3,00,500

Solution:
Trial Balance
as on March 31, 2019
 S.No. List of Items Debit Credit
Balances Balances

1 Bank Overdraft 85,000

2 Sales 8,10,000
3 Purchases Return 22,500
4 Debtors 4,00,500
5 Wages 96,000
6 Capital 1,58,750
7 Purchases 4,45,000
8 Cash in hand 8,500
9 Creditors 2,15,000
10 Sales Return 15,750

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11 Equipment 25,000
12 Opening Stock 3,00,500
Total 12,91,250 12,91,250

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Question:4
Prepare a Trial Balance from the following items:

Capital 24,000 Building 12,000

Opening Stock
Furniture
Purchases
Cash
8,500 Returns Inward
2,600 Returns Outward
8,950 Trade Expenses
7,300 Discount Received
1,900
350
1,000
970
ID
U
Carriage 300 Salary 3,000
Sales 22,500 Office Rent 2,270
Solution:
YG

Trial Balance
as on March 31, 2018
S.No. List of Items Debit Credit
Balances Balances
1 Capital 24,000
2 Opening Stock 8,500
D

3 Furniture 2,600
4 Purchases 8,950
5 Cash 7,300
U

6 Carriage 300
7 Sales 22,500
8 Building 12,000
ST

9 Returns Inward 1,900

10 Returns Outwards 350
11 Trade Expenses 1,000
12 Discount Received 970
13 Salary 3,000
14 Office Rent 2,270
Total 47,820 47,820

Question:5
The following are the balances extracted from the books of Mr. A. Mukhopadhyay. Prepare a Trial Balance as on 31st March,
2019:
 Cash 2,000 Sundry Creditors 40,000

Capital 80,000 Investment 8,000

Purchases 85,000 Plant and Machinery 15,000
Sales 1,08,400 Building 20,000
Purchases Return 6,000 Furniture 6,000
Sales Return 4,000 Electricity 700
Transportation 1,800 Postage 400
Discount Allowed 500 Drawings 8,000
Printing 5,000 Salaries 6,000
Sundry Debtors 70,000 Travelling Expenses 2,000
Input CGST A/c 2,500 Output CGST A/c 1,500
Input SGST A/c 2,500 Output SGST A/c 1,500
Input IGST A/c 4,000 Output IGST A/c 6,000

60
Solution:
Trial Balance
as on March 31, 2019
S.No. List of Items Debit Credit
Balances Balances

E3
1 Cash 2,000
2 Capital 80,000
3 Purchases 85,000
4 Sales 1,08,400
5 Purchases Return 6,000
6
7
8
Sales Return
Transportation
Discount Allowed
4,000
1,800
500
ID
U
9 Printing 5,000
10 Sundry Debtors 70,000
11 Input CGST A/c 2,500
YG

12 Input SGST A/c 2,500

13 Input IGST A/c 4,000
14 Sundry Creditors 40,000
15 Investments 8,000
16 Plant & Machinery 15,000
D

17 Building 20,000
18 Furniture 6,000
19 Electricity 700
U

20 Postage 400
21 Drawings 8,000
22 Salaries 6,000
ST

23 Travelling Expenses 2,000

24 Output CGST A/c 1,500
25 Output SGST A/c 1,500
26 Output IGST A/c 6,000
Total 2,43,400 2,43,400

Question:6
From the following information, prepare a Trial Balance of M/s. Prayag for the year ended 31st March, 2019:

Capital Accounts 1,25,000 Sales 1,54,500

Furniture and Fittings 6,400 Bank (Cr. Balance) 28,500
Motor Car 62,500 Purchase Returns 1,250
Buildings 75,000 Commission (Cr.) 3,750
 Total Debtors 38,000 Sales Return 2,000
Total Creditors 25,000 Advertisement 2,500
Bad Debts 1,250 Interest Account (Dr.) 1,180
Stock (1st April 2018) 34,600 Cash Balance 6,500
Purchases 54,750 Insurance and Taxes 12,500
Input IGST A/c 3,000 Salaries 40,820
Output CGST A/c 1,500 Output SGST A/c 1,500
Solution:
Trial Balance
as on March 31, 2019
S.No. List of Items Debit Credit
Balances Balances
1 Capital Accounts 1,25,000
2 Furniture & Fittings 6,400

60
3 Motor Car 62,500
4 Buildings 75,000
5 Total Debtors 38,000
6 Total Creditors 25,000

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7 Bad Debts 1,250
8 Opening Stock 34,600
9 Purchases 54,750
10 Input IGST A/c 3,000
11 Output CGST A/c 1,500
12
13
14
Sales
Bank Overdraft
Purchases Return
1,54,500
28,500
1,250
ID
15 Commission (Cr.) 3,750
U
16 Sales Return 2,000
17 Advertisement 2,500
YG

18 Interest Account (Dr.) 1,180

19 Cash Balance 6,500
20 Insurance & Tax 12,500
21 Salaries 40,820
22 Output SGST A/c 1,500
Total 3,41,000 3,41,000
D

Question:7
U

​From the following balances extracted from the Ledger of Sri Narugopal, prepare Trial Balance as on 31st March, 2019:
ST

Capital 75,00,000 Building 7,50,000

Plant 15,00,000 Stock on 1st April, 2018 12,50,000
Cash in Hand 2,500 Cash at Bank 5,75,000
Commission Received 1,75,000 Rates, Taxes and Insurance 30,000
Discount (Dr.) 55,000 Discount (Cr.) 45,000
Purchases Return 50,000 Sundry Creditors 2,50,000
Interest Received 30,000 Sales 62,50,000
Repairing Charges 1,25,000 Book Debts 15,00,000
General Expenses 3,00,000 Rent 62,500
Wages 5,00,000 Purchases 48,00,000
Furnitures 1,20,000 Carriage and Freight 75,000
Sales Return 90,000 Delivery Van 5,00,000
Loan Advanced 6,00,000 Travelling Expenses 50,000
Office Salaries 6,25,000 Drawings 6,00,000
Solution:
 Trial Balance
as on March 31, 2019

S.No. List of Items Debit Credit

Balances Balances
1 Capital 75,00,000
2 Plant 15,00,000
3 Cash in Hand 2,500
4 Commission Received 1,75,000
5 Discount (Dr.) 55,000
6 Purchases Return 50,000
7 Interest Received 30,000
8 Repairing Charges 1,25,000
9 General Expenses 3,00,000

60
10 Wages 5,00,000
11 Furnitures 1,20,000
12 Sales Return 90,000
13 Loan Advanced 6,00,000

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14 Office Salaries 6,25,000
15 Building 7,50,000
16 Opening Stock 12,50,000
17 Cash at Bank 5,75,000
18
19
20
21
Rates, Taxes & Insurance
Discount (Cr.)
Sundry Creditors
Sales
30,000
ID
45,000
2,50,000
62,50,000
U
22 Book Debts 15,00,000
23 Rent 62,500
24 Purchases 48,00,000
YG

25 Carriage & Freight 75,000

26 Delivery Van 5,00,000
27 Travelling Expenses 50,000
28 Drawings 6,00,000
29 Suspense A/c 1,90,000
D

Total 1,43,00,000 1,43,00,000

U

Question:8
​From the following Ledger account balances extracted from the books of R.J. Gupta, prepare a Trial Balance as on 31st March,
2019:
ST

Purchases 1,04,000 Drawings 7,950

Sundry Debtors 18,550 Sundry Creditors 8,300
Premises 62,000 Returns Inward 5,360
Sales 1,49,000 Furniture 15,600
Returns Outward 8,900 Cash in Hand 390
Rates and Taxes 780 Capital 85,000
Cash at Bank 1,560 Factory wages 5,830
Carriage Inwards 650 Carriage Outwards 260
Salaries 3,900 Rent Received 2,990
Stock (1st April, 2018) 25,000 Insurance 2,100
Input IGST A/c 5,000 Bad Debts 260
Input CGST A/c 2,500 Output IGST A/c 10,000
Input SGST A/c 2,500
Solution:
 Trial Balance
as on March 31, 2019

Debit Credit
S. No. Particulars L.F. Balance Balance
( in 000') ( in 000')
(i) Purchases 1,04,000
(ii) Sundry Debtors 18,550
(iii) Premises 62,000
(iv) Sales 1,49,000
(v) Return Outwards 8,900
(vi) Rates and Taxes 780
(vii) Cash at Bank 1,560
(viii) Carriage Inwards 650
(ix) Salaries 3,900

60
(x) Stock (1st April, 2014) 25,000
(xi) Drawings 7,950
(xii) Sundry Creditors 8,300
(xiii) Return Inwards 5,360
(xiv) Furniture 15,600

E3
(xv) Cash in hand 390
(xvi Capital 85,000
(xvii) Factory Wages 5,830
(xviii) Carriage Outwards 260
(xix) Rent Received 2,990
(xx)
(xxi)
(xxii)
(xxiii)
Insurance
Bad Debts
Input IGST A/c
Input CGST A/c
ID
2,100
260
5,000
2,500
(xxiv) Input SGST A/c 2,500
U
(xxv) Output IGST A/c 10,000
2,64,190 2,64,190
YG

Question:9
Following Trial Balance is given but it is not correct. Prepare correct Trial Balance.

Amount Amount
Debit Balances Credit Balances
D

( ) ( )
Building 3,00,000 Capital 3,68,000
Machinery 85,000 Furniture 28,000
U

Returns Outward 13,000 Sales 5,20,000

Bad Debts 14,000 Debtors 3,00,000
Cash 2,000 Interest Received 13,000
Discount Received 15,000
ST

Bank Overdraft 50,000

Creditors 2,50,000
Purchases 5,00,000
12,29,000 12,29,000

Solution:
Trial Balance
as on March 31, 2018
Debit Credit
S.No. List of Items
Balances Balances
1 Building 3,00,000
2 Machinery 85,000
3 Returns Outward 13,000
4 Bad Debts 14,000
 5 Cash 2,000
6 Discount Received 15,000
7 Bank Overdraft 50,000
8 Creditors 2,50,000
9 Purchases 5,00,000
10 Capital 3,68,000
11 Furniture 28,000
12 Sales 5,20,000
13 Debtors 3,00,000
14 Interest Received 13,000
Total 12,29,000 12,29,000

60
Question:10
Redraft correctly the Trial Balance given below:

Amount Amount
Debit Balances Credit Balances

E3
( ) ( )
Capital 8,000 Debtors 7,580
Bad Debts Recovered 250 Bank Deposits 2,750
Creditors 1,250 Discount Allowed 40
Returns Outward 350 Drawings 600
Bank Overdraft 1,570 Returns Inward 450
Rent
Salaries
Trade Expenses
Cash in Hand
360
850
300
210
Sales
Bills Payable
Grant Received
ID
13,690
1,350
1,000
U
Opening Stock 2,450
Purchases 11,870
27,460 27,460
YG

Solution:
Trial Balance
as on March 31, 2018
S.No. List of Items Debit Credit
Balances Balances
D

1 Capital 8,000
2 Bad Debts Recovered 250
3 Creditors 1,250
U

4 Returns Outward 350

5 Bank Overdraft 1,570
6 Rent 360
ST

7 Salaries 850
8 Trade Expenses 300
9 Cash in Hand 210
10 Opening Stock 2,450
11 Purchases 11,870
12 Debtors 7,580
13 Bank Deposits 2,750
14 Discount Allowed 40
15 Drawings 600
16 Returns Inward 450
17 Sales 13,690
18 Bills Payable 1,350
19 Grants Received 1,000
 Total 27,460 27,460

Question:11
Correct the following Trial Balance:

Debit Balances Credit Balances

Opening Stock 1,02,600 Debtors 45,000
Returns Outward 48,000 Carriage Outwards 15,000
Salaries 36,000 Capital 1,65,600
Creditors 84,000 Machinery 54,000
Bank 1,35,000 Returns Inward 9,000
Carriage 18,000 Insurance Claim Received 12,000
Inwards

60
Rent Received 9,000 Trade Expenses 18,000
Discount 6,000 Sales 4,20,000
Allowed
Purchases 3,00,000 Building 60,000
Bills Payable 60,000

E3
7,98,600 7,98,600

Solution:
Trial Balance (Corrected)
Amount Amount
Debit Credit

Opening Stock
Return Inwards
Salaries
(Rs)
1,02,600 Creditors
9,000 Rent Received
36,000 Bills Payable
ID (Rs)
84,000
9,000
60,000
Bank 1,35,000 Capital 1,65,600
U
Carriage Inward 18,000 Return Outwards 48,000
Discount Allowed 6,000 Discount Received 12,000
Purchases 3,00,000 Sales 4,20,000
YG

Debtors 45,000
Carriage Outwards 15,000
Machinery 54,000
Trade Expenses 18,000
Building 60,000
7,98,600 7,98,600
D
U

Question:12
Prepare correct Trial Balance from the following Trial Balance in which there are certain mistakes:

Heads of Accounts Dr. ( ) Cr. ( )

ST

Cost of Goods Sold 1,50,000 ...

Closing Stock ... 40,000
Debtors ... 60,000
Creditors ... 30,000
Fixed Assets 50,000 ...
Opening Stock 60,000 ...
Expenses ... 20,000
Sales ... 2,00,000
Capital 90,000 ...

Total 3,50,000 3,50,000

Solution:
Trial Balance
 Debit Credit
S. No. Account Title (Rs) (Rs)

(i) Cost of Goods Sold 1,50,000

(ii) Closing Stock 40,000
(iii) Debtors 60,000
(iv) Creditors 30,000
(v) Fixed Assets 50,000
(vi) Expenses 20,000
(vii) Sales 2,00,000
(viii) Capital 90,000
3,20,000 3,20,000

60
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ID
U
YG
D
U
ST