Trial Balance Problems and Solutions [Notes with PDF]

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In this article, we will learn in-depth about the trial balance practical problems and their solutions.

Problem-01:
From the following Ledger balances of AB International, Prepare a Trial Balance.

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 Balance Amount ($) Balance Amount ($)

Purchases 12,000 Carriage 250

Sales 25,000 Commission 350

Discount 1,200 Rent and Rates 600

Salaries 2,500 Building 6,000

Wages 10,000 Machinery 5,000

Cash in Hand 975 Delivery Van 4,000

Cash at Bank 13,500 Capital 20,000

Repairs & Maintenance 870 Accounts Payable 3,200

Sundry Expenses 350 Accounts Receivable 4,500

Mortgage 14,000 Closing Stock 5,750

Mortgage Interest 250 Opening Stock 2,450

Traveling Expenses 100 Returns Inward 300

Insurance 150 Reserve for doubtful Debts 800

Notes Payable 2,745 Notes Receivable 400

before you go to the solution. It will help you understand and prepare a trial balance quickly.

Procedures for preparing a Trial Balance.

Factors to be considered in preparing the Trial balance.

Solution:
AB International

Trial Balance

As at………..

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SL No Particulars L.F. Debit ($) Credit ($)

1 Purchases 12,000

2 Sales 25,000

3 Discount 1,200

4 Salaries 2,500

5 Wages 10,000

6 Cash in Hand 975

7 Cash at Bank 13,500

8 Repairs & Maintenance 870

9 Sundry Expenses 350

10 Mortgage 14,000

11 Mortgage Interest 250

12 Traveling Expenses 100

13 Insurance 150

14 Carriage 250

15 Commission 350

16 Rent and Rates 600

17 Building 6,000

18 Machinery 5,000

19 Delivery Van 4,000

20 Capital 20,000

21 Accounts Payable 3,200

22 Accounts Receivable 4,500

23 Opening Stock 2,450

24 Returns Inward 300

25 Reserve for doubtful debts 800

26 Notes Payable 2,745

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 27 Notes Receivable 400

Total 65,745 65,745

Problem-2:
From the following balances extracted from the ledger accounts of Q&S Trading. Prepare a Trial
Balance as of 31st September 2020.

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Balance Amount Balance Amount
($) ($)

Opening Stock 7,000 Office expenses 1,100

Purchase 18,000 Interest On Investment 650

Clearing Charges 400 Provision for Bad debts 800

Carriage Inwards 800 Interest on Drawings 450

Royalty 8000 Dividend Received 270

Dock Charges 300 Bad Debts Recover 160

Electricity 700 Interest on Saving Certificate 250

Salaries 3000 Accrued on loan interest 200

Sales 35,000 Advance Gas Bill 300

Closing Stock 6,500 Bank Overdraft 6,000

Import Duties 1,200 Loan 5,000

Accrued Rent 500 Cash at hand (Opening) 1,200

Sales Return 350 Sales Ledger Balance 12,000

Discount on Sales 250 Pension Fund 3,500

Cash at Bank 3,575 Income Tax Reserved 1,200

Postage & Telegram 120 Depreciation Fund 2,500

Stationary 265 Advance Wages 500

Discount Allowed 370 Notes Payable 2,500

Stable Expenses 120 Accounts Payable 4,500

Advertisement 900 Accrued Interest on Bank 300

Balance

Carriage Outward 600 Preliminary Expenses 1,250

Commission of Sales 160 Deferred Advertisement 450

Representative

Due Telephone Bill 280 Income Tax 300

Interest on Capital 120 Insurance Premium 200

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 Repairs and Renewal 900 Goodwill 3,500

Depreciation 400 Trademark 4,000

Bank Charges 90 Furniture 2,500

Interest in Bank Overdraft 350 Car 3,000

Land Development 14,000 Cash at hand (Closing) 600

Trial Balance Explained with an Exa...

Trial Balance Explained with an Example | Accounting How To | How to Pass Accounting Class

Solution:
Q&S Trading

Trial Balance

As of 31st September 2020

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Sl No Particulars L.F. Debit ($) Credit ($)

1 Opening Stock 7,000

2 Purchase 18,000

3 Clearing Charges 400

4 Carriage Inwards 800

5 Royalty 8,000

6 Dock Charges 300

7 Electricity 700

8 Salaries 3,000

9 Sales 35,000

10 Import Duties 1,200

11 Accrued Rent 500

12 Sales Return 350

13 Discount on Sales 250

14 Cash at Bank 3,575

15 Postage & Telegram 120

16 Stationary 265

17 Discount Allowed 370

18 Stable Expenses 120

19 Advertisement 900

20 Carriage Outward 600

21 Commission of Sales Representative 160

22 Due Telephone Bill 280

23 Interest on Capital 120

24 Repairs and Renewal 900

25 Depreciation 400

26 Bank Charges 90

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27 Interest on Bank Overdraft 350

28 Land Development 14,000

29 Office Expenses 1,100

30 Interest On Investment 650

31 Provision for Bad debts 800

32 Interest on Drawings 450

33 Dividend Received 270

34 Bad Debts Recover 160

35 Interest on Saving Certificate 250

36 Accrued on Loan Interest 200

37 Advance Gas Bill 300

38 Bank Overdraft 8,000

39 Loan 28,000

40 Sales Ledger Balance 12,000

41 Pension Fund 3,500

42 Income Tax Reserved 1,200

43 Depreciation Fund 2,500

44 Advance Wages 500

45 Notes Payable 2,500

46 Accounts Payable 8,500

47 Accrued Interest on Bank Balance 300

48 Preliminary Expenses 1,250

49 Deferred Advertisement 450

50 Income Tax 300

51 Insurance Premium 200

52 Goodwill 3,500

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 53 Trademark 4,000

54 Furniture 2,500

55 Car 3,000

56 Cash at Hand (Closing) 600

57 Suspense A/C * 310

Total 92,520 92,520

Note:

Suspense A/C= Difference Between Debit and Credit Columns =( 92,520-92,210)=310

Opening Cash at Hand and Closing Stock will not be included in Trial Balance.

Problem-3:
From the following balances taken from the books of Purple International. Prepare a Trial Balance
as of 30 June 2020

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Balance Amount Balance Amount
($) ($)

Discount on Sales 200 Dividend Received 550

Apprenticeship Allowance 300 Interest on Bank Overdraft 200

Discount On Purchase 150 Interest on Saving Certificate 600

Opening Stationery 450 Capital 18,000

Opening Stock 3,000 Repairs and Renewal 650

Purchase 18,000 Accrued Salaries/Wages 600

Adjusted Purchase 15,000 Accrued on loan Interest 200

Carriage Inwards 500 Advance Rent 400

Excise Duties 400 Bank Overdraft 2,000

Dock Charges 500 Preliminary Expenses 2,000

Fuel & Power 600 Purchase Ledger Balance 8,000

Factory Supervisors Salaries 4,000 Sales Ledger Balance 22,000

Sales 40,000 General Reserve 4,000

Postage & Telegram 250 Motor Car 4,000

Closing Stock 6,000 Sales Tax 400

Opening Cash at hand 600 Sinking Fund 2,000

Opening Cash at Bank 1,200 Income Tax 300

Purchase Return 200 Notes Payable 1,200

Provision for Bad debts 1,300 Deferred Advertisement 400

Sales Return 300 Advance Salary 500

Advertisement 1,200 Accrued Interest on Bank Balance 800

Loan 6,000 Savings Certificate 3,000

Export Duty 300 Pension Fund 4,000

Carriage Outward 700 Copyright 1,500

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 Bad Debts Recover 300 Goodwill 2,000

Discount Allowed 350 Trademark 2,500

Stock Destroyed By fire 1,200 Building 10,000

Interest on Capital 250 Land 15,000

Depreciation Fund 4,000 Income Tax Reserved 3,000

Depreciation 700 Life Insurance Premium 200

Bank Charges 100 Leasehold Property 6,000

Profit from Consignment 5,000 Furniture and Fittings 1,500

Commercial Expenses 800 Govt. Securities 3,000

Other Indirect Expenses 200 Closing Stationery 800

Interest On Investment 700 Closing Cash at Hand 700

Bad Debts 300 Closing Cash at Bank 1,500

Interest on Drawings 150

Solution:
Purple International

Trial Balance

As of 30 June 2020

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Sl No Particulars L.F. Debit ($) Credit ($)

1 Discount on Sales 200

2 Apprenticeship Allowance 300

3 Discount On Purchase 150

4 Opening Stationery 450

5 Adjusted Purchase 15,000

6 Carriage Inwards 500

7 Excise Duties 400

8 Dock Charges 500

9 Fuel & Power 600

10 Factory Supervisors Salaries 4,000

11 Sales 40,000

12 Postage & Telegram 250

13 Closing Stock* 6,000

14 Purchase Return 200

15 Provision for Bad Debts 1,300

16 Sales Return 300

17 Advertisement 1,200

18 Loan 6,000

19 Export Duty 300

20 Carriage Outward 700

21 Bad Debts Recover 300

22 Discount Allowed 350

23 Stock Destroyed By fire 1,200

24 Interest on Capital 250

25 Depreciation Fund 4,000

26 Depreciation 700

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27 Bank Charges 100

28 Profit from Consignment 5,000

29 Commercial Expenses 800

30 Other Indirect Expenses 200

31 Interest On Investment 700

32 Bad Debts 300

33 Interest on Drawings 150

34 Dividend Received 550

35 Interest on Bank Overdraft 200

36 Interest on Saving Certificate 600

37 Capital 18,000

38 Repairs and Renewal 650

39 Accrued Salaries/Wages 600

40 Accrued on Loan Interest 200

41 Advance Rent 400

42 Bank Overdraft 2,000

43 Preliminary Expenses 2,000

44 Purchase Ledger Balance 8,000

45 Sales Ledger Balance 22,000

46 General Reserve 4,000

47 Motor Car 4,000

48 Sales Tax 400

49 Sinking Fund 2,000

50 Income Tax 300

51 Notes Payable 1,200

52 Deferred Advertisement 400

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 53 Advance Salary 500

54 Accrued Interest on Bank Balance 800

55 Savings Certificate 3,000

56 Pension Fund 4,000

57 Copyright 1,500

58 Goodwill 2,000

59 Trademark 2,500

60 Building 10,000

61 Land 15,000

62 Income Tax Reserved 3,000

63 Life Insurance Premium 200

64 Leasehold Property 6,000

65 Furniture and Fittings 1,500

66 Govt. Securities 3,000

67 Closing Cash at Hand 700

68 Closing Cash at Bank 1,500

Total 1,07,950 1,07,950

Note:

Opening Stock and Purchase will not be shown in Trial Balance as both are included in the
Adjusted Purchase.
Closing stock will be shown in the trial balance as there is an adjusted purchase
Opening Stationery, opening cash at hand and opening cash at the bank will not be included in
the trial balance.

You can also read:

What is Trial Balance? Features, Importance, and Method of Trial Balance

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