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Mention any two differences between trial balance and balance sheet. - Accountancy

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प्रश्न

Mention any two differences between trial balance and balance sheet.

अंतर स्पष्ट करें
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उत्तर

Basis Trial Balance Balance sheet
1. Name It is a list of ledger balances on a particular date A balance sheet is a statement showing the position the position of assets and liabilities on a particular date.
2. Formal It contains columns for debit balances and credit balances The item are grouped as assets and liabilities.
3. Stage It is prepared before the prepartion of the final accounts. It is prepared after preparing trial balance and trading and profit and loss account.
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अध्याय 12: Final Accounts of Sole Proprietors - 1 - Very short answer questions [पृष्ठ २६४]

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सामाचीर कलवी Accountancy [English] Class 11 TN Board
अध्याय 12 Final Accounts of Sole Proprietors - 1
Very short answer questions | Q II 6. | पृष्ठ २६४

संबंधित प्रश्न

State True or False with reasons :
Every item of Trial Balance has only one effect.


Fill in the blank :
Income Receivable appears on __________ side of Balance Sheet.


Do you agree or disagree with the following statement :
Bank Overdraft is treated as an Internal Liability


Bank overdraft should be shown ______.


Balance sheet shows the ______ of the business.


“Balance sheet is not an account” – Explain.


What is meant by grouping and marshaling assets and liabilities?


From the following particulars, prepare balance sheet in the books of Bragathish as on 31st December, 2017:

Particulars Particulars
Capital 80,000 Cash in hand 20,000
Debtors 12,800 Net profit 4,800
Drawings 8,800 Plant 43,200

Prepare trading and profit and loss account in the books of Ramasundari for the year ended 31st December, 2017 and balance sheet as on that date from the following information:

Particulars Particulars
Opening stock 2,500 Sales 7,000
Wages 2,700 Purchases 3,300
Closing Stock 4,000 Salary 2,600
Discount received 2,500 Capital 52,000
Machinery 52,000 Cash at Bank 6,400
Creditors 8,000    

How will the following appear in the final accounts of Karaikudi sports club for the year ending 31st March, 2019?

Particulars
Tournament fund on 1st April 2018 90,000
Tournament fund investment on 1st April 2018 90,000
Interest received on tournament fund investment 9,000
Donation to tournament fund 10,000
Tournament expenses 60,000

From the following Receipts and Payment account and from the information given below of Ramanathapuram Sports Club, prepare Income and Expenditure account for the year ended 31st December, 2018 and the balance sheet as on that date.

Dr. Receipts and Payments Account for the year ended 31st December, 2018 Cr.
Receipts Payments
To Balance b/d     By Rent   11,000
Cash in hand 5,000   By Entertainment expenses    11,200
Cash at bank 10,000 15,000 By Furniture   10,000
To Subscription     By Sports materials purchased   13,000
2017 12,000   By Match expenses   12,000
2018 33,000   By Investments made   28,000
2019 16,000 61,000 By Balance c/d    
To Entrance fees   6,000 Cash in hand 1,300  
To General donations   7,000 Cash at bank 4,000 5,300
To Sale of old sports materials   1,000      
To Miscellaneous receipts   500      
    90,500     90,500

Additional information:

  1. Capital fund as on 1st January 2018 ₹ 30,000.
  2. Opening stock of sports material ₹ 3,000 and closing stock of sports material ₹ 5,000.

From the following Receipts and Payments account of Sivakasi Pensioner’s Recreation Club, prepare income and expenditure account for the year ended 31st March, 2018 and the balance sheet as on that date.

Dr. Receipts and Payments Account for the year ended 31st March, 2018 Cr.
Receipts Payments
To balance b/d     By Rent and rates 18,000
Cash in hand 10,000   By Electricity charges 17,000
Cash at bank 20,000 30,000 By Furniture purchased 12,000
To Subscription     By Billiards table purchased 70,000
2016 – 2017 5,000   By Repairs and renewals 16,000
2017 – 2018 25,000   By Special dinner expenses 4,000
2018 – 2019 6,000 36,000 By Special dinner expenses 2,000
To Legacies   40,000 By Balance c/d  
To Rent from hall   14,000 Cash in hand 1,000
To Lockers rent   5,000    
To Collection for special dinner   12,000    
To Balance c/d        
Bank overdraft   3,000    
    1,40,000   1,40,000

Additional information:

  1. The club had 300 members each paying ₹ 100 as annual subscription.
  2. The club had furniture ₹ 10,000 on 1.4.2017.
  3. The subscription still due but not received for the year 2016 – 2017 is ₹ 1,000.

What is meant by Grouping and Marshalling of assets and liabilities? Explain the ways in which a balance sheet may be marshalled.


The machinery of ₹ 35,500 is purchased on 1st July 2018 and on the same day ₹ 4,500 are spent on the installation of the Machinery. The proprietor has decided to Depreciate Machinery at the rate of 7% p.a. Calculate the amount of depreciation, assuming that accounting year is ending on 31st March every year.


Calculate the Gross Profit/Gross Loss
Purchases A/c ₹ 15,500, Sales A/c ₹ 30,000, Carriage Inward ₹ 1,200, Opening Stock ₹ 5,000, Purchases Returns ₹ 500, Closing Stock ₹ 18,000


Calculate the amount of gross profit and operating profit on the basis of the following balances extracted from the books of M/s Rajiv & Sons for the year ended March 31, 2017.

 
Opening stock 50,000
Net sales 11,00,000
Net purchases 6,00,000
Direct expenses 45,000
Administration expenses 45,000
Selling and distribution expenses 65,000
Loss due to fire 20,000
Closing stock 70,000

Which statement best describes the relationship between assets and source of funds?


If cash at bank increases, which side of the balance sheet changes?


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