CMA Foundation · Fundamentals of Financial and Cost Accounting · Trial Balance
The trial balance of Mehta & Co. shows: Capital ₹2,00,000; Sales ₹5,00,000; Purchases ₹3,20,000; Sundry creditors ₹60,000; Rent ₹40,000; Salaries ₹90,000; Furniture ₹1,50,000; Debtors ₹80,000; Cash ₹X. If the trial balance agrees, what is the value of X?
Cash is ₹80,000. Total credits are ₹7,60,000 (capital, sales, creditors). Debits other than cash total ₹6,80,000. The cash balance needed to make both sides equal is the difference, ₹80,000.
- A₹1,20,000Correct
- B₹1,40,000
- C₹80,000
- D₹1,00,000
Explanation
Credits = 2,00,000 + 5,00,000 + 60,000 = 7,60,000. Debits excluding cash = 3,20,000 + 40,000 + 90,000 + 1,50,000 + 80,000 = 6,80,000. Cash = 7,60,000 - 6,80,000 = ₹80,000. Check: 6,80,000 + 80,000 = 7,60,000. So the correct figure is ₹80,000, and option 0 is wrong.
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More Trial Balance questions
- A trial balance is prepared at the end of an accounting period mainly to check which of the following?
- Which one of the following errors will NOT be disclosed by the trial balance?
- While preparing a trial balance of Sharma Traders, which of the following balances would normally appear on the credit side?
- Which statement about the 'total and balances method' of preparing a trial balance is correct?
- Which one of the following errors would be disclosed by the trial balance?
- Which one of the following errors will NOT affect the agreement of the Trial Balance?