Page 82 - Office Practice and Accounting 10

Insurance 26,250 –
Wages 60,000 –
Sales – 10,80,000
Advertisement 37,500 –
Investment 1,50,000 –
Capital – 8,25,000
Bill receivable 60,000
Total 28,50,000 28,50,000

EXERCISE

1. What is a trial balance?
2. Give any three objectives of trial balance.
3. Name various methods of preparing trial balance.
4. What are the errors disclosed by trial balance?
5. What are the errors not disclosed by trial balance?
6. Write about the error of principle.
7. What do you mean by error of commission?
8. Write in short about error of omission.
9. What do you mean by suspense account?

Practical Problems

1. Prepare Trial Balance from the following ledger balance, extracted
from the books of Laxmi Dairy as on 31-12-2015.

Particulars Amount Particulars Amount
Cash 21576 `
Capital 50,000 Drawings 2000
Bank 9900 Discount 199
Machinery 10,000 Return out 1300
Sales 25500 Furniture 5000
Purchase 28000 Telephone 500
Debtors 3150 Creditors 4700
Sales return 350 Postage 825

Ans: Total Rs. 81,500

76 Office Practice and Accounting 10