Trial Balance: Usefulness and Limitations

FA – May 2012 – L1 – SA – Q3 – Trial Balance

Identifying how a trial balance helps disclose errors.

Question

In which of the following circumstances will the preparation of a Trial Balance assist in disclosing an error?

A. Failure to post an entry journal
B. Posting rent expenses to motor running account
C. Failure to post part of a journal entry
D. Posting the debit of a journal entry as a credit and vice versa
E. Failure to record an entry in the journal

Answer

Find Related Questions by Tags, levels, etc.

Tags: Error Detection, Journal Entries, Trial Balance
Level: Level 1

Topic: Trial Balance: Usefulness and Limitations
Series: MAY 2012

FA – Nov 2011 – L1 – SA – Q8 – Trial Balance

This question asks about what a collection of ledger balances is used for.

Question

A collection of ledger balances is used in preparing?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Ledger Balances, Trial Balance
Level: Level 1

Topic: Trial Balance: Usefulness and Limitations
Series: NOV 2011

FA – Nov 2011 – L1 – SA – Q16 – Trial Balance

This question identifies which type of error affects the trial balance.

Question

Which of the following errors would affect a Trial Balance?
A. Error of commission
B. Error of original entry
C. Casting error
D. Error of omission
E. Error of principle

Answer

Find Related Questions by Tags, levels, etc.

Tags: Errors, Trial Balance
Level: Level 1

Topic: Trial Balance: Usefulness and Limitations
Series: NOV 2011

FA – Nov 2020 – L1 – SB – Q3a – Trial Balance: Usefulness and Limitations

Explain trial balance errors and suspense account.

Question

i. Explain what a trial balance is and state FOUR errors that a trial balance does not reveal. (3 Marks)
ii. What is a suspense account? (2 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Errors, Journal Entries, Suspense account, Trial Balance
Level: Level 1

Topic: Trial Balance: Usefulness and Limitations
Series: NOV 2020

FA – Nov 2020 – L1 – SA – Q19 – Trial Balance: Usefulness and Limitations

Identifies an error that would be discovered when extracting a trial balance.

Question

Which of the following errors would be discovered by extracting a trial balance?
A. A transaction has been completely missed in the accounts
B. The double entries have been made the wrong way around
C. Different figures have been entered for the debit and credit entries
D. An expense item has been posted to a non-current asset account
E. A credit sale made to Joke Ventures was debited to Joke Enterprises account

Answer

Find Related Questions by Tags, levels, etc.

Tags: Error Detection, Trial Balance
Level: Level 1

Topic: Trial Balance: Usefulness and Limitations
Series: NOV 2020

FA – Nov 2020 – L1 – SA – Q1 -Trial Balance: Usefulness and Limitations

Identifies an item not found on the debit column of a trial balance.

Question

Which of the following items is NOT found on the debit column of a trial balance?
A. Capital
B. Motor vehicle
C. Rent and rates
D. Salaries and wages
E. Postage and stationery

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting principles, Financial Statements, Trial Balance
Level: Level 1

Topic: Trial Balance: Usefulness and Limitations
Series: NOV 2020

FA – Nov 2013 – L1 – SA – Q13 – Trial Balance: Usefulness and Limitations

Identifying the type of error that does not affect a trial balance.

Question

Which of the following errors will NOT affect the agreement of a Trial Balance?

A. Error in computation of balances
B. Transposition of figures
C. Errors of wrong posting in the debit and credit columns
D. Errors of principle
E. Double entry errors

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Errors, Double Entry, Trial Balance
Level: Level 1

Topic: Trial Balance: Usefulness and Limitations
Series: NOV 2013

FA – Nov 2015 – L1 – SA – Q18 – Trial Balance: Usefulness and Limitations

This question identifies which item is NOT expected on the debit column of a trial balance.

Question

Which of the following items is NOT found on the debit column of a trial balance?
A. Capital
B. Motor vehicle
C. Rent
D. Salaries and wages
E. Postage and stationery

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting principles, Debit Column, Trial Balance
Level: Level 1

Topic: Trial Balance: Usefulness and Limitations
Series: NOV 2015

FA – May 2018 – L1 – SA – Q17 – Trial Balance: Usefulness and Limitations

Identifies the type of error that does not affect the balancing of a trial balance.

Question

Which of the following errors does NOT affect the balancing of a trial balance?
A. Error of principle
B. Casting error
C. Transposition error
D. Duplication entries
E. Missing entries in the ledger

Answer

Find Related Questions by Tags, levels, etc.

Tags: Error Types, Financial Statements, Trial Balance

Topic: Trial Balance: Usefulness and Limitations

FA – Nov 2021 – L1 – SB – Q3 – Trial Balance

This question involves preparing financial statements based on a given trial balance and additional adjustments.

Question

The following balances remained in the books of Chukwu Limited as at December 31, 2020:

Accounts	₦’000
200,000,000 ordinary shares of N1 each	200,000
Cash at bank and in hand	500
Inventory (December 31, 2020)	61,200
Receivables	18,005
Payables	15,009
Gross profit	128,942
General reserves	25,000
Salaries and wages	28,430
Prepayments	600
Bad debts written off	500
Accrued expenses	526
Director’s account (Credit)	2,500
Interest on loan notes (half year)	600
Sundry expenses	4,100
Rates and insurance	1,520
6% loan notes	20,000
Lighting and cooling	1,310
Postage and telephones	800
Motor vehicles (Cost ₦25,000,000)	25,000
Office fittings and equipment (Cost ₦65,500,000)	42,350
Provision for depreciation – Motor vehicles	10,000
Provision for depreciation – Office fittings & equipment	23,150
Profit or loss (January 1, 2020) (Credit)	22,300
Land and buildings (Cost)	239,362

Additional Information:

Office fittings and equipment are to be depreciated at 15% on cost, and motor vehicles at 20% of cost.
Provisions are to be made for:
- Directors’ fees of N6,000,000
- Audit fees of N2,500,000
The amount for insurance includes a premium of ₦600,000 paid in September 2020 to cover fire loss for the period September 1, 2020, to August 31, 2021.
A bill for N548,000 in respect of electricity consumed up to December 31, 2020, has not been accounted for.
The directors have recommended:
- N15,000,000 be transferred to general reserves
- A 5% dividend on ordinary share capital

You are required to prepare:
a. The trial balance of Chukwu Limited at December 31, 2020. (6 Marks)
b. The statement of profit or loss for the year ended December 31, 2020. (8 Marks)
c. The statement of financial position as at December 31, 2020. (6 Marks)
Note: Ignore taxation.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Adjustments, Financial Position, Profit or Loss, Trial Balance
Level: Level 1

Topic: Trial Balance: Usefulness and Limitations
Series: NOV 2021

FA – May 2012 – L1 – SA – Q3 – Trial Balance

Identifying how a trial balance helps disclose errors.

Question

In which of the following circumstances will the preparation of a Trial Balance assist in disclosing an error?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Error Detection, Journal Entries, Trial Balance
Level: Level 1

Topic: Trial Balance: Usefulness and Limitations
Series: MAY 2012

FA – Nov 2011 – L1 – SA – Q8 – Trial Balance

This question asks about what a collection of ledger balances is used for.

Question

A collection of ledger balances is used in preparing?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Ledger Balances, Trial Balance
Level: Level 1

Topic: Trial Balance: Usefulness and Limitations
Series: NOV 2011

FA – Nov 2011 – L1 – SA – Q16 – Trial Balance

This question identifies which type of error affects the trial balance.

Question

Which of the following errors would affect a Trial Balance?
A. Error of commission
B. Error of original entry
C. Casting error
D. Error of omission
E. Error of principle

Answer

Find Related Questions by Tags, levels, etc.

Tags: Errors, Trial Balance
Level: Level 1

Topic: Trial Balance: Usefulness and Limitations
Series: NOV 2011

FA – Nov 2020 – L1 – SB – Q3a – Trial Balance: Usefulness and Limitations

Explain trial balance errors and suspense account.

Question

i. Explain what a trial balance is and state FOUR errors that a trial balance does not reveal. (3 Marks)
ii. What is a suspense account? (2 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Errors, Journal Entries, Suspense account, Trial Balance
Level: Level 1

Topic: Trial Balance: Usefulness and Limitations
Series: NOV 2020

FA – Nov 2020 – L1 – SA – Q19 – Trial Balance: Usefulness and Limitations

Identifies an error that would be discovered when extracting a trial balance.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Error Detection, Trial Balance
Level: Level 1

Topic: Trial Balance: Usefulness and Limitations
Series: NOV 2020

FA – Nov 2020 – L1 – SA – Q1 -Trial Balance: Usefulness and Limitations

Identifies an item not found on the debit column of a trial balance.

Question

Which of the following items is NOT found on the debit column of a trial balance?
A. Capital
B. Motor vehicle
C. Rent and rates
D. Salaries and wages
E. Postage and stationery

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting principles, Financial Statements, Trial Balance
Level: Level 1

Topic: Trial Balance: Usefulness and Limitations
Series: NOV 2020

FA – Nov 2013 – L1 – SA – Q13 – Trial Balance: Usefulness and Limitations

Identifying the type of error that does not affect a trial balance.

Question

Which of the following errors will NOT affect the agreement of a Trial Balance?

A. Error in computation of balances
B. Transposition of figures
C. Errors of wrong posting in the debit and credit columns
D. Errors of principle
E. Double entry errors

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Errors, Double Entry, Trial Balance
Level: Level 1

Topic: Trial Balance: Usefulness and Limitations
Series: NOV 2013

FA – Nov 2015 – L1 – SA – Q18 – Trial Balance: Usefulness and Limitations

This question identifies which item is NOT expected on the debit column of a trial balance.

Question

Which of the following items is NOT found on the debit column of a trial balance?
A. Capital
B. Motor vehicle
C. Rent
D. Salaries and wages
E. Postage and stationery

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting principles, Debit Column, Trial Balance
Level: Level 1

Topic: Trial Balance: Usefulness and Limitations
Series: NOV 2015

FA – May 2018 – L1 – SA – Q17 – Trial Balance: Usefulness and Limitations

Identifies the type of error that does not affect the balancing of a trial balance.

Question

Which of the following errors does NOT affect the balancing of a trial balance?
A. Error of principle
B. Casting error
C. Transposition error
D. Duplication entries
E. Missing entries in the ledger

Answer

Find Related Questions by Tags, levels, etc.

Tags: Error Types, Financial Statements, Trial Balance

Topic: Trial Balance: Usefulness and Limitations

FA – Nov 2021 – L1 – SB – Q3 – Trial Balance

This question involves preparing financial statements based on a given trial balance and additional adjustments.

Question

The following balances remained in the books of Chukwu Limited as at December 31, 2020:

Accounts	₦’000
200,000,000 ordinary shares of N1 each	200,000
Cash at bank and in hand	500
Inventory (December 31, 2020)	61,200
Receivables	18,005
Payables	15,009
Gross profit	128,942
General reserves	25,000
Salaries and wages	28,430
Prepayments	600
Bad debts written off	500
Accrued expenses	526
Director’s account (Credit)	2,500
Interest on loan notes (half year)	600
Sundry expenses	4,100
Rates and insurance	1,520
6% loan notes	20,000
Lighting and cooling	1,310
Postage and telephones	800
Motor vehicles (Cost ₦25,000,000)	25,000
Office fittings and equipment (Cost ₦65,500,000)	42,350
Provision for depreciation – Motor vehicles	10,000
Provision for depreciation – Office fittings & equipment	23,150
Profit or loss (January 1, 2020) (Credit)	22,300
Land and buildings (Cost)	239,362

Additional Information:

Office fittings and equipment are to be depreciated at 15% on cost, and motor vehicles at 20% of cost.
Provisions are to be made for:
- Directors’ fees of N6,000,000
- Audit fees of N2,500,000
The amount for insurance includes a premium of ₦600,000 paid in September 2020 to cover fire loss for the period September 1, 2020, to August 31, 2021.
A bill for N548,000 in respect of electricity consumed up to December 31, 2020, has not been accounted for.
The directors have recommended:
- N15,000,000 be transferred to general reserves
- A 5% dividend on ordinary share capital

Answer

Find Related Questions by Tags, levels, etc.

Tags: Adjustments, Financial Position, Profit or Loss, Trial Balance
Level: Level 1

Topic: Trial Balance: Usefulness and Limitations
Series: NOV 2021

Topic: Trial Balance: Usefulness and Limitations

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

FA – May 2012 – L1 – SA – Q3 – Trial Balance

Identifying how a trial balance helps disclose errors.

You're reporting an error for "FA – May 2012 – L1 – SA – Q3 – Trial Balance"

FA – Nov 2011 – L1 – SA – Q8 – Trial Balance

This question asks about what a collection of ledger balances is used for.

You're reporting an error for "FA – Nov 2011 – L1 – SA – Q8 – Trial Balance"

FA – Nov 2011 – L1 – SA – Q16 – Trial Balance

This question identifies which type of error affects the trial balance.

You're reporting an error for "FA – Nov 2011 – L1 – SA – Q16 – Trial Balance"

FA – Nov 2020 – L1 – SB – Q3a – Trial Balance: Usefulness and Limitations

Explain trial balance errors and suspense account.

You're reporting an error for "FA – Nov 2020 – L1 – SB – Q3a – Trial Balance: Usefulness and Limitations"

FA – Nov 2020 – L1 – SA – Q19 – Trial Balance: Usefulness and Limitations

Identifies an error that would be discovered when extracting a trial balance.

You're reporting an error for "FA – Nov 2020 – L1 – SA – Q19 – Trial Balance: Usefulness and Limitations"

FA – Nov 2020 – L1 – SA – Q1 -Trial Balance: Usefulness and Limitations

Identifies an item not found on the debit column of a trial balance.

You're reporting an error for "FA – Nov 2020 – L1 – SA – Q1 -Trial Balance: Usefulness and Limitations"

FA – Nov 2013 – L1 – SA – Q13 – Trial Balance: Usefulness and Limitations

Identifying the type of error that does not affect a trial balance.

You're reporting an error for "FA – Nov 2013 – L1 – SA – Q13 – Trial Balance: Usefulness and Limitations"

FA – Nov 2015 – L1 – SA – Q18 – Trial Balance: Usefulness and Limitations

This question identifies which item is NOT expected on the debit column of a trial balance.

You're reporting an error for "FA – Nov 2015 – L1 – SA – Q18 – Trial Balance: Usefulness and Limitations"

FA – May 2018 – L1 – SA – Q17 – Trial Balance: Usefulness and Limitations

Identifies the type of error that does not affect the balancing of a trial balance.

You're reporting an error for "FA – May 2018 – L1 – SA – Q17 – Trial Balance: Usefulness and Limitations"

FA – Nov 2021 – L1 – SB – Q3 – Trial Balance

This question involves preparing financial statements based on a given trial balance and additional adjustments.

You're reporting an error for "FA – Nov 2021 – L1 – SB – Q3 – Trial Balance"

FA – May 2012 – L1 – SA – Q3 – Trial Balance

Identifying how a trial balance helps disclose errors.

You're reporting an error for "FA – May 2012 – L1 – SA – Q3 – Trial Balance"

FA – Nov 2011 – L1 – SA – Q8 – Trial Balance

This question asks about what a collection of ledger balances is used for.

You're reporting an error for "FA – Nov 2011 – L1 – SA – Q8 – Trial Balance"

FA – Nov 2011 – L1 – SA – Q16 – Trial Balance

This question identifies which type of error affects the trial balance.

You're reporting an error for "FA – Nov 2011 – L1 – SA – Q16 – Trial Balance"

FA – Nov 2020 – L1 – SB – Q3a – Trial Balance: Usefulness and Limitations

Explain trial balance errors and suspense account.

You're reporting an error for "FA – Nov 2020 – L1 – SB – Q3a – Trial Balance: Usefulness and Limitations"

FA – Nov 2020 – L1 – SA – Q19 – Trial Balance: Usefulness and Limitations

Identifies an error that would be discovered when extracting a trial balance.

You're reporting an error for "FA – Nov 2020 – L1 – SA – Q19 – Trial Balance: Usefulness and Limitations"

FA – Nov 2020 – L1 – SA – Q1 -Trial Balance: Usefulness and Limitations

Identifies an item not found on the debit column of a trial balance.

You're reporting an error for "FA – Nov 2020 – L1 – SA – Q1 -Trial Balance: Usefulness and Limitations"

FA – Nov 2013 – L1 – SA – Q13 – Trial Balance: Usefulness and Limitations

Identifying the type of error that does not affect a trial balance.

You're reporting an error for "FA – Nov 2013 – L1 – SA – Q13 – Trial Balance: Usefulness and Limitations"

FA – Nov 2015 – L1 – SA – Q18 – Trial Balance: Usefulness and Limitations

This question identifies which item is NOT expected on the debit column of a trial balance.

You're reporting an error for "FA – Nov 2015 – L1 – SA – Q18 – Trial Balance: Usefulness and Limitations"

FA – May 2018 – L1 – SA – Q17 – Trial Balance: Usefulness and Limitations

Identifies the type of error that does not affect the balancing of a trial balance.

You're reporting an error for "FA – May 2018 – L1 – SA – Q17 – Trial Balance: Usefulness and Limitations"

FA – Nov 2021 – L1 – SB – Q3 – Trial Balance

This question involves preparing financial statements based on a given trial balance and additional adjustments.

You're reporting an error for "FA – Nov 2021 – L1 – SB – Q3 – Trial Balance"

Our offerings

Contact Info

Customer

Get In Touch

admin