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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 trial balance? Explain.
2. Explain the objectives of trial balance.
3. Briefly explain the errors disclosed by trial balance.
4. What are the errors not disclosed by trial balance?

Practical Problems

1. From the following information, prepare trial balance for the year 2015.

Particulars Amount Particulars Amount
Bank 83500 Purchase 140,000
Capital 1,60,000 Advertisement 15,000
Vehicle 50,000 Rent 30,250
Equipment 30,000 Sales 64,750
Creditors 130,000 Drawing 6,000

Ans: Total Rs. 3,54,750

Office Practice and Accounting 9 193