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.

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

You can read out two articles 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………..

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
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.

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 Balance	300
Carriage Outward	600	Preliminary Expenses	1,250
Commission of Sales Representative	160	Deferred Advertisement	450
Due Telephone Bill	280	Income Tax	300
Interest on Capital	120	Insurance Premium	200
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

Solution:

Q&S Trading

Trial Balance

As of 31st September 2020

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
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
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

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
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

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
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
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
• 25 Short Questions and Answers-Trial Balance