Page 118 - Account 10

Glossary

Disagreement : Not to agree
Errors : mistakes committed unknowingly
Fraud : to cheat, mistakes committed knowingly
Subsidiary book : additional book where the record of credit purchase,
credit sales, return and cash transaction are recorded.
Omitted : to neglect, to leave out
Omission : lapse
Accuracy : exactness/equal
Rectified : corrected
Revealed : found
Suspense account : doubtful account

Exercise

A. Answer the following questions in one sentence.
1. What is trial balance?
2. What is suspense account?
3. What are the methods of preparing trial balance?
4. What do you mean by errors of principle?
5. Write the major debit items of trial balance.

B. Give short answers to the following question.
6. Define a trial balance and mention its importance.
7. Mention the specimen rulings of a trial balance.
8. Write the objectives of trial balance.
9. Mention the important considerations of a trial balance.
10. What is accounting error? What are its types from trial balance point of view?
Mention.
11. Mention the errors that can be revealed by a trial balance.
12. Describe about the errors that cannot be revealed by a trial balance, with suitable
examples.
NUMERICAL PROBLEMS

13. Pass journal entries, prepare necessary ledger accounts and draw out a trial
balance from the following information of ABC Co., Chitwan.
Jestha 1 Commenced business with cash of Rs. 20,000 and goods worth
Rs. 10,000.

118 Aakar’s Office Practice and Accountancy - 10 Trial Balance 119