what is trial balance class 11

what is trial balance class 11
Meaning And Definition of Trial Balance
Various accounts are opened in the ledger and after recording the journal entries in it, their
‘balance’ or ‘balance’ is worked out. For the purpose of ascertaining the mathematical
correctness of the accounts, ‘Trial Balance’ is prepared. Trial Balance is also called
‘Examination List’.
“A Trial Balance is a Summary of Ledger”. It is the list in which balances of all the accounts
of a ledger and cash book are kept. It is considered when the sum of the amounts of debit
side and credit side are equal. That the accounts are mathematically correct. In short, the
reconciliation of trial balance is regarded as proof of the mathematical correctness of the
books of account. It is created on a certain date.
Following are some of the major definitions of ‘Trial Balance
According to William Pickles — “Trial Balance accounts opened in the ledger at the end of
the financial year or on any other date is the list of balances that is made to check whether
the debit total is in fact the same as the credit total.’ ,
According to Spicer & Pegler — ” When at a given Date all the postings are complete (that
is, the double entries of all the transactions are Complete), a schedule of the Balances is
Prepared. This schedule is called the Trial Balance”
According to Carter — ” Trial Balance is a Statement of Debit and Credit balances derived
from Ledger, including balances of Cash And Bank taken from Cash Book”
Ideal definition – “Balance is the list of debit and credit totals or account balances of various
accounts of the ledger which is made for the purpose of ascertaining the arithmetical
accuracy of the account on a certain date.”
Main Features of Trial Balance
(1) It shows the debit and credit totals of the ledger accounts or the balances of the
accounts.

(2) It is prepared on a certain date.
(3) Its purpose is to ascertain the arithmetical accuracy of the balances of the accounts.
(4) It is generally made at the end of the year.
(5) This is a special type of list.
(6) If the totals of the debit and credit sides of the balance sheet are equal, then generally
the entries are considered to be mathematically correct and if their totals are not equal, then
it is understood that there is some mathematical error in them.
(7) Final accounts are prepared from trial balance.
(8) It is prepared on a separate plain paper.
(9) It duly and factually presents all our articles.
Objectives of Preparing A Trial Balance
The question arises as to why trial balance is prepared. In fact, it is not mandatory to make a
trial balance, but since its preparation serves many purposes, it is prepared by almost all
businessmen and business organisations. In brief, trial run has the following objectives:
(1) Information about the arithmetical accuracy of the accounts – The main purpose of
preparing trial balance is to obtain information about the accuracy of the accounts opened in
the ledger, especially the arithmetical accuracy.
(2) To help in locating Errors – By making trial balance, it helps to find out the errors in the
total of the subsidiary books, the errors related to the entries in the ledger and the errors in
the calculation of the balance of the accounts. Is.
(3) To prepare the final accounts i.e. details – every businessman wants to get
information about the profit-loss and financial condition of his business. Trial balance is
prepared for this purpose. Trading Account, Profit & Loss Account and Balance Sheet can
be easily prepared from the trial balance.
(4) Knowing the balance of a particular account – The balance of any account of the
ledger can be known easily.
Is Trial Balance a Ledger Account
• Balance sheet is not a ledger account. It is only a statement which is prepared to check the
arithmetical accuracy of the entries made from the journal to the ledger.
• Trial balance is prepared from the balances or balances of various accounts of the ledger,
but the ledger is prepared from the entries of the journal and cash book.

• The title of trial balance mentions the date on which it is prepared but the title of the
account in the ledger Name remains, such as building account, salary account etc.
Preparation of Trial Balance
There are three methods of preparing Trial Balance:
(1) Total Method
(2) Balance Method
(3) Total – Cum – Balance Methods
Out of these three, the second method i.e. remaining method is the most prevalent and the
best method.
(1) Total Method — In this method, trial balance is prepared from the totals of both the sides
of each account of the ledger. In this method, there are four fields in the balance sheet – in
the first field ‘head of accounts’ is written. The ‘page number of the ledger’ is written in the
second box, the debit totals of each account are written in the third box and the credit totals
of all the accounts are written in the fourth box. Finally, the grand total of the totals on the
debit and credit sides is calculated. Now this method is not widely used.
Remember – To use this method, add the amounts of debit side and credit side of each
account of the ledger, do not remove their balance at all.
(2) Balance Method — Under this method the debit balance or credit balance of each
account is written. In this method also there are four columns of trial balance- (i) column for
title of accounts, (ii) column for page number of ledger, (iii) column for debit balance, and (iv)
column for credit balance. In this method the accounts which do not have any balance are
not shown in the trial balance. Finally, the totals of the debit and credit balances are worked
out separately. In practice, this method of making trial balance is used.
Specimen of a trial Balance
Trial Balance of ……..

S.No Head of Account L.
F
Dr. Amount
₹
Cr. Amount
₹
Assets, Expenses & Losses ………..
Capital, Liabilities, Income &
Profit
…………
Grand Total ………. ………..
Accounting Treatment of Closing Stock in Trial Balance
• Normally closing stock is not shown in trial balance as no separate account is opened for it
in the general ledger.
• The closing stock is shown as an adjustment below the trial balance.
• Yes, if an adjustment entry has already been made in respect of closing stock, then closing
stock will be shown on the debit side of the trial balBalance
Accounting Treatment of Opening Stock in Trial Balance
• The opening stock is shown in the debit side of the balance sheet.
• If the cost of goods sold is shown in the trial balance and both ‘opening stock’ and ‘closing
stock’ are shown, then
(i) The cost of goods sold ie Cost of Goods Sold will be shown in the debit account of trial
balance.
(ii) ‘Closing Stock’ i.e. will be shown in the debit column of trial balance, but
(iii) Opening stock will not be shown in the trial balance.
Remember
• Opening Stock i.e. Opening Stock is shown in the debit column of trial balance. Closing
Stock is not shown in trial balance because there is no separate account for it in Journal
Ledger. is opened.
• Sales Returns or Returns Inward are shown in the Debit column of the Balance Sheet.
• Purchases Returns or Returns Outward are shown in the credit column of the trial balance.
•Carriage or Purchases or Carriage Inward and Carriage on Sales or Carriage Outward both
are shown in the debit column of Balance Sheet

(3) Totals – Cum – Balance Method — This method is a mixed form of addition method
and remainder method. Under this method, four boxes are made for the amount. Two cells
are there for writing the totals of debit and credit balances of different accounts and two cells
are there for writing debit and credit balances of different accounts. This system is also not in
practice.
Uses of Trial Balance
1. It checks the arithmetical correctness of the books.
2. If the balance sheet matches, then it can be assumed that the books are correct.
3. Availability of trial balance helps in preparation of financial statements or final accounts.
actually trial balance, for final account Acts as a base or exchange.
Limitations of Trial Balance
1. Reconciliation of trial balance is not the final proof of the correctness of the books of
accounts.
2. It is a kind of control over the books, it cannot prove anything.
3. It is not a part of the books, it is generally prepared on a separate sheet of paper.
From the following balances, prepares Trial Balance as on 31 March, 2017 in correct
And proper form :
Purchases ₹ 10,250
Sales ₹ 25,800
Opening Stock ₹ 3,800
Wages ₹ 2,600

Salaries ₹ 3,400
Purchases Returns ₹ 2,350
Capital ₹ 40,000
Insurance ₹ 1,200
Tex & Rent ₹ 2,400
Creditors ₹ 6,700
Commission (Cr). ₹ 500
Buildings ₹ 10,000
Debtors ₹ 5,800
Bill Receivable ₹ 4,000
Machinery ₹ 15,000
Furniture ₹ 4,500
Interest on Investment ₹ 1,200
Investment ₹ 15,000
Sales Returns ₹ 850
Discount Received ₹ 2,200
Solution :
Trial Balance of …….
See the table on article
Points to be considered while preparing Trial Balance
(1) The accounts of the ledger having debit balance are written on the debit side of the trial
balance and the accounts having credit balance are written on the credit side of the trial
balance.
(2) All assets, liabilities, expenses or expenses and losses accounts have debit balances,
while capital, liabilities, creditors, income and profit accounts have credit balances.
Is a Trial Balance Conclusive proof of the Accuracy of Accounts

The main purpose of preparing Trial Balance is to check the mathematical correctness of the
accounts. Generally, if the totals of both the sides of the trial balance (i.e. debit and credit
sides) match, then it is understood that the accounting of both the sides is complete and
there is no arithmetical error, but the question arises whether the totals of both the sides of
the trial balance match Is it a conclusive proof of the correctness of the accounts?
The answer to this question is that only mathematical accuracy can be known from the
receipt of Trial Balance , it cannot be considered as proof of complete correctness of the
accounts. It has been seen many times that Trial Balance So it is found but there are errors
in the books.
In fact, some errors or inaccuracies are such that they do not affect the reconciliation of trial
balance. As a result, reconciliation of trial balance is not a conclusive proof of correctness of
accounts. Therefore, it is necessary to consider those inaccuracies. Even while living, one
gets the bottom line.
Frequently Asked Questions
Qs 1. What is the formula for the trial balance?
Ans. The formula for the trial Balance is total debits = total credits
Qs 2. What is the trial balance class 11 answer in a simple sentence?
Ans. A Book keeping worksheet in Which the balance of all ledgers are Compiled into debit
and Credit account Column totals that are equal.
• Read more : What is Petty cash Book
• Read more : what is Trading account In accounting
• Read more : Theory base of accounting class 11 notes
• Read more : Mixcelebrity.xyz

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