Trial Balance

₹14,300 on the debit side

Step 1: Under the Balance Method, we calculate the NET balance of each account. Step 2: Cash Account: Debit total = ₹59,900; Credit total = ₹45,600. Step 3: Since debit > credit, the balance is a DEBIT balance. Step 4: Net balance = ₹59,900 – ₹45,600 = ₹14,300. Step 5: This ₹14,300 will appear on the DEBIT side of the Trial Balance under the Balance Method. Cash Account being an asset always has a debit balance.

A Trial Balance proves only arithmetical accuracy, not complete accuracy of all accounting entries

Step 1: The key limitation of Trial Balance must be understood clearly. Step 2: Option A is WRONG – a tallied Trial Balance does NOT guarantee that all transactions are correctly recorded. Errors like errors of omission, commission, or compensating errors can still exist. Step 3: Option B is WRONG – a non-tallying Trial Balance could indicate any arithmetic error (wrong amount, wrong side posting), not necessarily an error of principle. Step 4: Option C is CORRECT – Trial Balance proves only arithmetical accuracy. Certain errors (like recording in the wrong account) don't affect the tally. Ste

Trial Balance will still tally as both Purchases and Surender's accounts are unaffected

Step 1: This is an error of COMPLETE OMISSION – the transaction has not been recorded at all. Step 2: Since it was never entered in the Purchases Book, NO entry was made in Purchases Account (debit) and NO entry was made in Surender's Account (credit). Step 3: Because BOTH the debit and credit aspects of the transaction are missing equally, the Trial Balance is not disturbed. Step 4: The debit total and credit total remain equal (though both are understated by ₹10,000). Step 5: This is a classic example of errors that DO NOT affect the Trial Balance agreement – as mentioned in the chapter with

No entry in either Balance column (zero balance)

Step 1: The Combined Method uses FOUR columns – Dr. Total, Cr. Total, Dr. Balance, and Cr. Balance. Step 2: The Balance columns show the NET difference between the debit and credit totals. Step 3: When Dr. Total = Cr. Total = ₹25,000, the net balance = ₹25,000 – ₹25,000 = ₹0. Step 4: A zero balance means the account is fully settled, so nothing is entered in either the Dr. Balance or Cr. Balance column. Step 5: Such accounts still appear in the TOTAL columns (Dr. Total = ₹25,000, Cr. Total = ₹25,000) but have no entry in the Balance columns. This can be seen in Illustration 2 of the chapter.