What is/are the objective(s) of preparing the trial balance?
All of these
The correct answer is option 4. The objectives of preparing a trial balance are: - To ascertain the arithmetical accuracy of the ledger accounts. - To help in locating errors. - To help in the preparation of the financial statements, as it ensures the equality of debits and credits in the accounts.
Important Questions from Balance sheet statement
Which among the following will be shown as the debit balance in a trial balance?
Reserves and surpluses are shown on which side and under which head in the balance sheet?
In a Balance sheet, expenses incurred but not yet paid are shown as _____.
Given below are two statements:
Statement I : Deferred Tax Liabilities (Net) is the amount of tax on the temporary difference between the accounting income and taxable income. It arises when the accounting income is more than the taxable income.
Statement II : Deferred Tax Liabilities (Net) and Deferred Tax Assets (Net) are only book entries i.e. they are neither actual liability nor actual asset.
In the light of the above statements, choose the correct answer from the options given below:
An asset was purchased for Rs. 5,00,000 with the down payment of Rs. 1,00,000 and bills accepted for Rs. 4,00,000. What would be the effect on the total asset and total liabilities in the Balance Sheet?
