Trial Balance Problems and Solutions [Notes with PDF]

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.

BalanceAmount ($)BalanceAmount ($)
Purchases12,000Carriage250
Sales25,000Commission350
Discount1,200Rent and Rates600
Salaries2,500Building6,000
Wages10,000Machinery5,000
Cash in Hand975Delivery Van4,000
Cash at Bank13,500Capital20,000
Repairs & Maintenance870Accounts Payable3,200
Sundry Expenses350Accounts Receivable4,500
Mortgage14,000Closing Stock5,750
Mortgage Interest250Opening Stock2,450
Traveling Expenses100Returns Inward300
Insurance150Reserve for doubtful Debts800
Notes Payable2,745Notes Receivable400

You can read out two articles before you go to the solution. It will help you understand and prepare a trial balance quickly.

Solution:

AB International

Trial Balance

As at………..

SL NoParticularsL.F.Debit ($)Credit ($)
1Purchases12,000
2Sales25,000
3Discount1,200
4Salaries2,500
5Wages10,000
6Cash in Hand975
7Cash at Bank13,500
8Repairs & Maintenance870
9Sundry Expenses350
10Mortgage14,000
11Mortgage Interest250
12Traveling Expenses100
13Insurance150
14Carriage 250
15Commission350
16Rent and Rates600
17Building6,000
18Machinery5,000
19Delivery Van4,000
20Capital20,000
21Accounts Payable3,200
22Accounts Receivable4,500
23Opening Stock2,450
24Returns Inward300
25Reserve for doubtful debts800
26Notes Payable2,745
27Notes Receivable400
Total65,74565,745

Problem-2:

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

BalanceAmount ($)BalanceAmount ($)
Opening Stock7,000Office expenses1,100
Purchase18,000Interest On Investment650
Clearing Charges400Provision for Bad debts800
Carriage Inwards800Interest on Drawings450
Royalty8000Dividend Received270
Dock Charges300Bad Debts Recover160
Electricity700Interest on Saving Certificate250
Salaries3000Accrued on loan interest200
Sales35,000Advance Gas Bill300
Closing Stock6,500Bank Overdraft6,000
Import Duties1,200Loan5,000
Accrued Rent500Cash at hand (Opening)1,200
Sales Return350Sales Ledger Balance12,000
Discount on Sales250Pension Fund3,500
Cash at Bank3,575Income Tax Reserved1,200
Postage & Telegram120Depreciation Fund2,500
Stationary265Advance Wages500
Discount Allowed370Notes Payable2,500
Stable Expenses120Accounts Payable4,500
Advertisement900Accrued Interest on Bank Balance300
Carriage Outward600Preliminary Expenses1,250
Commission of Sales Representative160Deferred Advertisement450
Due Telephone Bill280Income Tax300
Interest on Capital120Insurance Premium200
Repairs and Renewal900Goodwill3,500
Depreciation400Trademark4,000
Bank Charges90Furniture2,500
Interest in Bank Overdraft350Car3,000
Land Development14,000Cash at hand (Closing)600

Solution:

Q&S Trading

Trial Balance

As of 31st September 2020

Sl NoParticularsL.F.Debit ($)Credit ($)
1Opening Stock7,000
2Purchase18,000
3Clearing Charges400
4Carriage Inwards800
5Royalty8,000
6Dock Charges300
7Electricity700
8Salaries3,000
9Sales35,000
10Import Duties1,200
11Accrued Rent500
12Sales Return350
13Discount on Sales250
14Cash at Bank3,575
15Postage & Telegram120
16Stationary265
17Discount Allowed370
18Stable Expenses120
19Advertisement900
20Carriage Outward600
21Commission of Sales Representative160
22Due Telephone Bill280
23Interest on Capital120
24Repairs and Renewal900
25Depreciation400
26Bank Charges90
27Interest on Bank Overdraft350
28Land Development14,000
29Office Expenses1,100
30Interest On Investment650
31Provision for Bad debts800
32Interest on Drawings450
33Dividend Received270
34Bad Debts Recover160
35Interest on Saving Certificate250
36Accrued on Loan Interest200
37Advance Gas Bill300
38Bank Overdraft8,000
39Loan28,000
40Sales Ledger Balance12,000
41Pension Fund3,500
42Income Tax Reserved1,200
43Depreciation Fund2,500
44Advance Wages500
45Notes Payable2,500
46Accounts Payable8,500
47Accrued Interest on Bank Balance300
48Preliminary Expenses1,250
49Deferred Advertisement450
50Income Tax300
51Insurance Premium200
52Goodwill3,500
53Trademark4,000
54Furniture2,500
55Car3,000
56Cash at Hand (Closing)600
57Suspense A/C *310
Total92,52092,520

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

BalanceAmount ($)BalanceAmount ($)
Discount on Sales200Dividend Received550
Apprenticeship Allowance300Interest on Bank Overdraft200
Discount On Purchase150Interest on Saving Certificate600
Opening Stationery450Capital18,000
Opening Stock3,000Repairs and Renewal650
Purchase18,000Accrued Salaries/Wages600
Adjusted Purchase15,000Accrued on loan Interest200
Carriage Inwards500Advance Rent400
Excise Duties400Bank Overdraft2,000
Dock Charges500Preliminary Expenses2,000
Fuel & Power600Purchase Ledger Balance8,000
Factory Supervisors Salaries4,000Sales Ledger Balance22,000
Sales40,000General Reserve4,000
Postage & Telegram250Motor Car4,000
Closing Stock6,000Sales Tax400
Opening Cash at hand600Sinking Fund2,000
Opening Cash at Bank1,200Income Tax300
Purchase Return200Notes Payable1,200
Provision for Bad debts1,300Deferred Advertisement400
Sales Return300Advance Salary500
Advertisement1,200Accrued Interest on Bank Balance800
Loan6,000Savings Certificate3,000
Export Duty300Pension Fund4,000
Carriage Outward700Copyright1,500
Bad Debts Recover300Goodwill2,000
Discount Allowed350Trademark2,500
Stock Destroyed By fire1,200Building10,000
Interest on Capital250Land15,000
Depreciation Fund4,000Income Tax Reserved3,000
Depreciation700Life Insurance Premium200
Bank Charges100Leasehold Property6,000
Profit from Consignment5,000Furniture and Fittings1,500
Commercial Expenses800Govt. Securities3,000
Other Indirect Expenses200Closing Stationery800
Interest On Investment700Closing Cash at Hand700
Bad Debts300Closing Cash at Bank1,500
Interest on Drawings150

Solution:

Purple International

Trial Balance

As of 30 June 2020

Sl NoParticularsL.F.Debit ($)Credit ($)
1Discount on Sales200
2Apprenticeship Allowance300
3Discount On Purchase150
4Opening Stationery450
5Adjusted Purchase15,000
6Carriage Inwards500
7Excise Duties400
8Dock Charges500
9Fuel & Power600
10Factory Supervisors Salaries4,000
11Sales40,000
12Postage & Telegram250
13Closing Stock*6,000
14Purchase Return200
15Provision for Bad Debts1,300
16Sales Return300
17Advertisement1,200
18Loan6,000
19Export Duty300
20Carriage Outward700
21Bad Debts Recover300
22Discount Allowed350
23Stock Destroyed By fire1,200
24Interest on Capital250
25Depreciation Fund4,000
26Depreciation700
27Bank Charges100
28Profit from Consignment5,000
29Commercial Expenses800
30Other Indirect Expenses200
31Interest On Investment700
32Bad Debts300
33Interest on Drawings150
34Dividend Received550
35Interest on Bank Overdraft200
36Interest on Saving Certificate600
37Capital18,000
38Repairs and Renewal650
39Accrued Salaries/Wages600
40Accrued on Loan Interest200
41Advance Rent400
42Bank Overdraft2,000
43Preliminary Expenses2,000
44Purchase Ledger Balance8,000
45Sales Ledger Balance22,000
46General Reserve4,000
47Motor Car4,000
48Sales Tax400
49Sinking Fund2,000
50Income Tax300
51Notes Payable1,200
52Deferred Advertisement400
53Advance Salary500
54Accrued Interest on Bank Balance800
55Savings Certificate3,000
56Pension Fund4,000
57Copyright1,500
58Goodwill2,000
59Trademark2,500
60Building10,000
61Land15,000
62Income Tax Reserved3,000
63Life Insurance Premium200
64Leasehold Property6,000
65Furniture and Fittings1,500
66Govt. Securities3,000
67Closing Cash at Hand700
68Closing Cash at Bank1,500
Total1,07,9501,07,950

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.

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