CMA Foundation · Fundamentals of Financial and Cost Accounting · Trial Balance
In the 'balances method' of preparing a trial balance, which of the following is shown in the debit column?
The closing balance of the machinery account is shown in the debit column, because machinery is an asset and assets have debit balances. Capital, sundry creditors and sales are credit balances, so under the balances method they are placed in the credit column of the trial balance.
- ACapital account balance
- BSundry creditors balance
- CClosing balance of the machinery accountCorrect
- DSales account balance
Explanation
Under the balances method, each ledger account is listed with its closing balance. Assets and expenses carry debit balances, so machinery goes in the debit column. Capital, creditors and sales carry credit balances and appear in the credit column.
Did you get it right without looking?
One question tells you little. A timed set on Trial Balance shows your real accuracy, how long you take and where you lose marks.
More Trial Balance questions
- Mehta Traders' trial balance shows total debits of Rs 4,86,000 and total credits of Rs 4,86,000. Which of the following errors would still r…
- A trial balance showed credit total Rs 2,10,000 and debit total Rs 2,04,000, and the difference was put to Suspense. Later it was found that…
- The trial balance of Gupta & Co. shows total debits of Rs 4,86,200 and total credits of Rs 4,82,700, and the difference was placed in the Su…
- Using the balance method, a trader's ledger shows: Capital Rs 2,00,000; Purchases Rs 1,50,000; Sales Rs 2,40,000; Furniture Rs 60,000; Credi…
- Which statement best describes why an agreed trial balance is not conclusive proof of accuracy of the books?
- Which of the following best describes the primary purpose of preparing a trial balance at the end of an accounting period?