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CBSE Class 11-commerce Answered

What are the limitations of trial balance?
Asked by Topperlearning User | 26 Jul, 2016, 12:17: PM
answered-by-expert Expert Answer

Limitations of a Trial Balance are as follows:

  1. A tallied trial balance does not indicate that all the transactions are recorded and posted correctly in the books.
  2. A trial balance cannot ascertain whether the effect of an error is cancelled by the effect of another error.
  3. If an incorrect amount is posted on the wrong side of a correct account or correct amount is posted on the correct side of the wrong account, then the trial balance fails to reflect such errors.
  4. If capital expenditure is mistakenly regarded as revenue expenditure then they may not be exposed in the form of mismatch between the two columns of the trial balance.
  5. When a transaction is recorded incorrectly in the books of original entry, it leads to the errors in recording which are not yet revealed in the trail balance. 
Answered by | 26 Jul, 2016, 02:17: PM
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CBSE 11-commerce - Accountancy Part I
Which accounts are not considered while preparing the trial balance?
Asked by Topperlearning User | 01 Jul, 2016, 03:14: PM
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CBSE 11-commerce - Accountancy Part I
Prepare Trial Balance from the following information: Prepaid Expense Rs.5,000, Profit and Loss A/c (Profit) Rs.8,000, Outstanding Rent Rs.2,000, Bad Debts Recovered Rs.4,000, Interest on Investment Rs.1,000, Due to Mohan Rs.5,000, Bank overdraft Rs.2,000, Discount Allowed Rs.800, Due from Vinod Rs.1,200, Investment Rs.15,000, Patents Rs.4,000, Machinery Rs.6,000, Capital Rs.10,000.
Asked by Topperlearning User | 01 Jul, 2016, 03:14: PM
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CBSE 11-commerce - Accountancy Part I
Prepare Trial Balance from the following information: Bank overdraft  Rs.80,000  Purchase Rs.3,90,000 Outstanding Expenses Rs.20,000 Sales Rs.4,20,000 Rent paid in advance Rs.30,000 Purchase Return Rs.10,000 Opening stock Rs.1,10,000  Fixed Assets Rs.2,00,000 Interest Received Rs.15,000  Bank Loan Rs.1,85,000   
Asked by Topperlearning User | 27 Jul, 2016, 01:01: PM
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CBSE 11-commerce - Accountancy Part I
What are the limitations of trial balance?
Asked by Topperlearning User | 26 Jul, 2016, 12:17: PM
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CBSE 11-commerce - Accountancy Part I
From the following ledger balances prepare the trial balance of Mr. Amol as on 31st March, 2015. Name of Accounts Amount Rs.  Cash 88,000 Creditors 54,000 Computers 45,000 Rent 8,800 Commission 4,000 Sales 44,000 Bank loan 22,500 Bills payable 17,300  
Asked by Topperlearning User | 26 Jul, 2016, 12:17: PM
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CBSE 11-commerce - Accountancy Part I
From the following information, draw up a trial balance of Mr. Satish Menon as on 31st December, 2015. Capital Rs.59,000; Carriage outwards Rs.800; Interest on loan Rs.5,000; Stock on 1st Jan, 2015 Rs.4,500; Purchases Rs.41,400; Creditors Rs.15,000; Sales Rs.34,600; Premises Rs.56,900.
Asked by Topperlearning User | 26 Jul, 2016, 12:17: PM
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CBSE 11-commerce - Accountancy Part I
Prepare a trial balance of Shri. Krishna from the given ledger balances as on 31St March, 2015. Particulars Amount Rs.  Particulars Amount Rs.  Purchases 33,800 Return inwards 3,200 Carriage inwards 900 Carriage outwards 1,200 Unpaid wages 4,100 Cash in hand 3,800 Reserve for doubtful debts 1,300 Outstanding expenses 3,400 Interest received 5,900 Bank overdraft 12,600 Discount allowed 3,100 Debtors 7,400 Insurance 11,000 Creditors 34,100  
Asked by Topperlearning User | 26 Jul, 2016, 12:17: PM
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CBSE 11-commerce - Accountancy Part I
Prepare a trial balance of Ms. Sunita’s account from the given ledger balances as on 31St March, 2015. Particulars Amount Rs.  Particulars Amount Rs.  Capital 80,000 Purchases 22,000 Opening stock 10,500 Bills receivable 2,800 Bills payable 4,300 Goodwill 15,000 Loan from bank 19,000 Plant and machinery 8,000 Sales 15,000 Debtors 5,000 Cash at bank 35,000 Office expenses 9,000 Investment @15% 11,000      
Asked by Topperlearning User | 26 Jul, 2016, 12:17: PM
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CBSE 11-commerce - Accountancy Part I
From the given ledger balances, prepare a trial balance as on 31st January, 2015. Particulars Amount Rs.  Particulars Amount Rs.  Cash in hand 8,000 Carriage inwards 900 Machinery 18,000 Carriage outwards 500 Purchases 55,000 Wages 4,500 Sundry debtors 12,000 Capital 100,000 Sundry creditors 9,000 Drawings 4,000 Rent 3,600 Interest on loan 2,500  
Asked by Topperlearning User | 26 Jul, 2016, 12:17: PM
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CBSE 11-commerce - Accountancy Part I
Prepare a trial balance from the following ledger balances. Particulars Rs.  Particulars Rs.  Cash in hand 7,200 Capital 66,000 Interest on loan 1,100 Drawings 3,330 Purchases 27,600 Machinery 8,000 Debtors 7,099 Advertisement 7,400 Sales 16,200 Fixed assets 21,000 Carriage inwards 1,100 Creditors 7400 Carriage outwards 1,300 Discount received 900 Salary 4,900 Return inwards 471  
Asked by Topperlearning User | 26 Jul, 2016, 12:32: PM
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