MCQ: Trial Balance – Complete Guide for JKSSB & Competitive Exams

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Last Updated on: May 1, 2026

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25 Trial Balance Questions & Answers for JKSSB Accounting

Master the fundamentals of trial balance with this curated set of 25 multiple-choice questions. Designed for JKSSB exam preparation, each question includes a clear answer and a concise explanation to solidify your understanding of this essential accounting tool.

Q1. What is the primary purpose of a trial balance in accounting?

  1. To prepare the company’s tax return
  2. To verify that total debits equal total credits after posting
  3. To calculate net income for the period
  4. To list all assets and liabilities at year-end

Answer: (b)

Explanation: A trial balance is a worksheet that lists the balances of all ledger accounts to ensure the sum of debit balances equals the sum of credit balances, helping to detect posting errors.

Q2. If a trial balance shows unequal debit and credit totals, which error could cause this?

  1. Recording a transaction twice on the same side
  2. Omitting a transaction entirely
  3. Posting a debit as a credit and vice versa for the same amount
  4. Correctly recording a transaction but transposing digits in the amount

Answer: (d)

Explanation: Transposition errors (e.g., recording $540 as $450) cause unequal totals because the debit and credit sides are affected by different amounts.

Q3. Which type of error will NOT be revealed by a trial balance?

  1. Omission of a transaction
  2. Posting an amount to the wrong account but on the correct side
  3. Recording a transaction with equal debits and credits but to incorrect accounts
  4. All of the above

Answer: (d)

Explanation: Errors of omission, commission (wrong account), and principle do not affect the arithmetic equality of debits and credits, so a trial balance will not disclose them.

Q4. The trial balance is prepared to:

  1. Ascertain the profit or loss of the business
  2. Check the arithmetical accuracy of the ledger accounts
  3. Determine the financial position of the business
  4. Record all transactions of the business

Answer: (b)

Explanation: Its core function is to test the arithmetical accuracy of ledger postings; it does not directly show profit, loss, or financial position.

Q5. When is a trial balance normally prepared?

  1. At the end of the accounting year only
  2. At the end of each month only
  3. At any time when required
  4. Only when the books are audited

Answer: (c)

Explanation: A trial balance can be prepared at any time (monthly, quarterly, or yearly) to check the accuracy of the books.

Q6. Which account normally appears on the debit side of a trial balance?

  1. Capital account
  2. Sales account
  3. Purchases account
  4. Creditors account

Answer: (c)

Explanation: Purchases is an expense account with a normal debit balance.

Q7. Which account normally has a credit balance and appears on the credit side?

  1. Cash account
  2. Drawings account
  3. Bank loan account
  4. Salaries expense account

Answer: (c)

Explanation: Bank loan is a liability and normally carries a credit balance.

Q8. A trial balance shows ₹5,00,000 on debit and ₹4,80,000 on credit. The ₹20,000 difference indicates:

  1. Profit of ₹20,000
  2. Loss of ₹20,000
  3. An error in the books
  4. Closing stock of ₹20,000

Answer: (c)

Explanation: A mismatch in totals indicates an arithmetical error in posting, balancing, or transferring amounts.

Q9. Which item appears on the credit side of a trial balance?

  1. Wages paid
  2. Rent received
  3. Purchase of machinery
  4. Drawings

Answer: (b)

Explanation: Rent received is an income account with a normal credit balance.

Q10. The trial balance is prepared from:

  1. Journal entries directly
  2. Ledger accounts
  3. Cash book only
  4. Bank statement

Answer: (b)

Explanation: It is prepared from the balances extracted from ledger accounts.

Q11. What is true about a trial balance?

  1. It is a part of the final accounts
  2. It is a statement, not an account
  3. It shows the financial position of the business
  4. It is prepared after the profit and loss account

Answer: (b)

Explanation: The trial balance is a statement prepared to check arithmetical accuracy before preparing final accounts.

Q12. What does a trial balance include?

  1. Only real accounts
  2. Only nominal accounts
  3. Both real and nominal accounts
  4. Only personal accounts

Answer: (c)

Explanation: It includes balances of all ledger accounts – real, nominal, and personal.

Q13. How is closing stock treated in a trial balance?

  1. Shown in the trial balance
  2. Shown in the trading account only
  3. Shown both in trial balance and trading account
  4. Not shown in the trial balance unless adjusted

Answer: (d)

Explanation: Closing stock appears in the trial balance only after an adjustment entry brings it into the books.

Q14. When in the accounting process is the trial balance prepared?

  1. After posting all journal entries to the ledger
  2. Before journalising any transaction
  3. After preparing the final accounts
  4. Before opening any ledger account

Answer: (a)

Explanation: Ledger accounts must be posted and balanced before extracting their balances for the trial balance.

Q15. On which side does the capital account normally appear?

  1. Debit side
  2. Credit side
  3. Either side depending on profit
  4. Not shown at all

Answer: (b)

Explanation: Capital is a liability of the business to the owner and normally has a credit balance.

Q16. The trial balance is prepared:

  1. Before preparing the trading and profit & loss account
  2. After preparing the balance sheet
  3. Only when the business is dissolved
  4. Only for partnership firms

Answer: (a)

Explanation: It is a preparatory step to check ledger accuracy before creating trading and profit & loss statements.

Q17. Which account has a debit balance in the trial balance?

  1. Sales returns
  2. Purchases returns
  3. Commission received
  4. Bank overdraft

Answer: (a)

Explanation: Sales returns (return inwards) reduce sales and have a debit balance.

Q18. On which side does the drawings account appear?

  1. Credit side
  2. Debit side
  3. Either side depending on profit
  4. Not shown at all

Answer: (b)

Explanation: Drawings reduce owner’s capital and have a debit balance.

Q19. Which account has a credit balance in the trial balance?

  1. Purchases account
  2. Sales account
  3. Wages account
  4. Discount allowed account

Answer: (b)

Explanation: Sales is a revenue account with a normal credit balance.

Q20. What does the trial balance include?

  1. Cash book only
  2. Petty cash book only
  3. Bank column of the cash book only
  4. All ledger accounts including cash and bank

Answer: (d)

Explanation: It extracts balances from all ledger accounts, including cash and bank.

Q21. If the debit side exceeds the credit side by ₹10,000, it indicates:

  1. Net profit of ₹10,000
  2. Net loss of ₹10,000
  3. An error in the books
  4. Closing stock of ₹10,000

Answer: (c)

Explanation: A mismatch indicates an arithmetical error; profit or loss is determined from the final accounts.

Q22. The trial balance includes the balance of:

  1. Only cash and bank accounts
  2. Only personal accounts
  3. All ledger accounts (real, nominal, personal)
  4. Only nominal accounts

Answer: (c)

Explanation: It includes balances of every ledger account irrespective of its nature.

Q23. Is the trial balance prepared before or after final accounts?

  1. After the preparation of final accounts
  2. Before the preparation of final accounts
  3. After the audit of accounts
  4. Only when a loan is taken

Answer: (b)

Explanation: It is an intermediate step before preparing final accounts.

Q24. Which item will appear on the credit side?

  1. Salaries paid
  2. Rent received
  3. Purchase of furniture
  4. Drawings

Answer: (b)

Explanation: Rent received is an income account with a normal credit balance.

Q25. The trial balance is prepared:

  1. After posting all journal entries to the ledger
  2. Before journalising any transaction
  3. After preparing the final accounts
  4. Before opening any ledger account

Answer: (a)

Explanation: This is a fundamental step: ledger accounts must be posted and balanced first.

Summary: This set covers key trial balance concepts for JKSSB accounting exams, including its purpose, preparation, common errors, and account classifications. Regular practice with these questions will build a strong foundation in financial accounting principles.

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