Trial balance

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 October 2013 trial balance is a statement which shows the ______ or the ______ of all the accounts.

a)balances , totals
b)debit balance , credit balance

answer: option (b)

but according to me answer as option (a) is also correct since there are two types of trial balances gross method,in which totals of all a/c's are shown and net method .in which balances of all a/c's are shown.
.
.
.
can anyone clarify this pls!

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

20 October 2013 Whether gross method or net method, finally each account net balance of debit & credit will flow to the p&l, balance sheet and any other statements. so option (b) is the correct answers

Message likes : 1 times

Ganeshbabu K

Ganeshbabu K (Expert)
Follow

20 October 2013 Yes, option b is correct answer

Message likes : 1 times

Upgrade to CAclubindia Pro. Subscribe Now!

@VaibhavJ

@VaibhavJ (Expert)
Follow

20 October 2013 Hi

Trial balance shows net balance. So option A can not be correct.

So it is not total of Debit & Total of Credit. But net off of Debit & Credit.

Thanks

Message likes : 1 times