Which among the following will be shown as the debit balance in a trial balance?
Interest paid
The correct answer is option 1. Interest paid is a type of expense and appears on the debit side of the trial balance. Expenses are debited because they reduce the capital or net worth of the business.
Similar Questions
A businessman can find out what his business owns and what it owes from _______.
Which of the following options is an INCORRECT pair considering a firm's balance sheet?
A trial balance shows
(i) Credit balances
(ii) Debit balances
Which of the following pairs is NOT correctly matched in the context of account balances shown in the Trial Balance?
Which of the following is (are) an example(s) of fictitious assets?
(i) Debit balance of Profit and Loss account
(ii) Goodwill
Which of the given statements is/are correct in the context of account balances of the Ledger?
(i) A debit balance of a personal account means that the party owes that amount to the business.
(ii) All real accounts show a debit balance.
(iii) Nominal accounts are not usually balanced, but closed by transfer to the Profit and Loss Account, at the time of preparing the final accounts.
What is/are the objective(s) of preparing the trial balance?
Reserves and surpluses are shown on which side and under which head in the balance sheet?
Important Questions from Balance sheet statement
A businessman can find out what his business owns and what it owes from _______.
Which of the following options is an INCORRECT pair considering a firm's balance sheet?
A trial balance shows
(i) Credit balances
(ii) Debit balances
Which of the following pairs is NOT correctly matched in the context of account balances shown in the Trial Balance?
Which of the following is (are) an example(s) of fictitious assets?
(i) Debit balance of Profit and Loss account
(ii) Goodwill
