Balancing Accounts & The Trial Balance

Question 1

True or False

At regular intervals, often at the end of the month, ‘T’ accounts are balanced to show the total amounts to date ?

Answer 1

True

Question 2

The (Trial Balance/Statement of profit or loss) is used to check the accuracy of the double entry book keeping ?

Answer 2

Trial balance

Question 3

Balancing accounts

Balance B/D is short for ?

Answer 3

Balance brought down

Question 4

Balancing accounts

Balance C/D is short for ?

Answer 4

Balance carried down

Question 5

Balancing accounts

When inputting the opening balance of a ledger pulled from the previous accounting period, would you use Balance B/D or Balance C/D ?

Answer 5

Balance B/D aka Balance brought down

Question 6

Balancing accounts

When inputting the closing balance of a ledger pushed to the next accounting period, would you use Balance B/D or Balance C/D ?

Answer 6

Balance C/D aka Balance carried down

Question 7

A C……. A…… is a summary account which records the totals of entries to a particular set of accounts ?

Answer 7

Control Account

Question 8

The (Payables/Recievables) ledger control account shows the totals of all the money owed to the business from credit customers ?

Answer 8

Recievables ledger control account

Question 9

The (Payables/Recievables) ledger control account shows the totals of all the money owed to credit suppliers from the business ?

Answer 9

Payables ledger control account

Question 10

True or False

It is the totals of the control accounts that are used on the trial balance rather than the individual trade recievable accounts ?

Answer 10

True - This is so there is less clutter and

Question 11

A trial balance is usually done (Weekly/Monthly/Yearly) to check that the accounts balance out ?

Answer 11

Monthly - most likely month end

Question 12

Trial balance

If the credit balance is (Less than, Same as, More than) the debit balance the accounts are arithmetically correct ?

Answer 12

Same as

Question 13

If a trial balance fails to balance there has most likely been an E…. somewhere along the process ?

Answer 13

Error

Question 14

The error of Principle, Comission, Original entry, Omission & Reversal of entries are all examples of errors that (Are/Are not) revealed by the trial balance ?

Answer 14

Are not

Question 15

1

A transaction has been entered into the wrong type of account, this error is an error of (Omission, Comission, Principle, Original entries) ?

Answer 15

Error of principle

E.g fuel for vehicles has been entered into the vehicles account and not the vehicles expense account.

Question 16

A transaction has been entered into the complete wrong account, this error is an error of (Omission, Comission, Principle, Original entries) ?

Answer 16

Error of comission

E.g Lemons LTD has bought from you on credit but you have debited Oranges LTD

Question 17

A transaction has been entered into the right account both times but the figures are incorrect, this error is an error of (Omission, Comission, Principle, Original entries) ?

Answer 17

Error of original entries

E.g You need to input $45 but you have instead put $54

Question 18

A customer has bought products from you on credit but you have made no entries into any of the accounts, this error is an error of (Omission, Comission, Principle, Original entries) ?

Answer 18

Error of Omission

Question 19

You have entered the debit and credit entries in the two right accounts but both are on the wrong sides of the account, this error is called a R……. O. E…… ?

Answer 19

Reversal of Entries