TRIAL BALANCE EXAM PAPER 1: 40 QUESTIONS WITH
FULL ANSWERS AND DETAILED RATIONALES
(FOUNDATION LEVEL REVISION & PRACTICE PACK)
Introduction
This Trial Balance Exam Paper 1 is a foundation-level accounting assessment
designed to help students master the preparation, interpretation, and correction of
trial balances. It focuses on identifying debit and credit entries, detecting errors,
understanding ledger postings, and applying basic accounting principles in
financial recording.
The paper is structured to build strong accounting fundamentals and improve
accuracy in financial statement preparation. Each question includes a correct
answer and a clear rationale to support learning and exam success.
Instructions
• Answer ALL questions in all sections
• Show all working for calculation questions
• Select the correct option for multiple-choice questions
• Use correct accounting terminology throughout
• Ensure all answers are clearly presented
• Time allowed: As per examination conditions
• Total marks: 100
SECTION A: MULTIPLE CHOICE QUESTIONS (15 MARKS)
1. A trial balance is used to:
A. Prepare cash flow statements
B. Check arithmetic accuracy of ledger accounts
C. Record sales only
D. Calculate tax
Answer B
Rationale: A trial balance ensures that total debits equal total credits.
, 2. If debits exceed credits, the trial balance shows:
A. Credit balance
B. Debit balance
C. No balance
D. Profit
Answer B
Rationale: The difference appears on the side with the higher total.
3. The trial balance is prepared from:
A. Income statement
B. Ledger accounts
C. Cash book only
D. Bank statement
Answer B
Rationale: It is extracted from the ledger balances.
4. A trial balance will NOT detect:
A. Mathematical errors
B. Equal debit-credit errors
C. Missing entries
D. Posting errors affecting both sides equally
Answer D
Rationale: Errors that still balance are not detected.
5. The main purpose of a trial balance is to:
A. Determine profit
B. Ensure ledger accuracy
C. Record cash transactions
D. Prepare invoices
Answer B
Rationale: It checks whether debit and credit totals agree.
FULL ANSWERS AND DETAILED RATIONALES
(FOUNDATION LEVEL REVISION & PRACTICE PACK)
Introduction
This Trial Balance Exam Paper 1 is a foundation-level accounting assessment
designed to help students master the preparation, interpretation, and correction of
trial balances. It focuses on identifying debit and credit entries, detecting errors,
understanding ledger postings, and applying basic accounting principles in
financial recording.
The paper is structured to build strong accounting fundamentals and improve
accuracy in financial statement preparation. Each question includes a correct
answer and a clear rationale to support learning and exam success.
Instructions
• Answer ALL questions in all sections
• Show all working for calculation questions
• Select the correct option for multiple-choice questions
• Use correct accounting terminology throughout
• Ensure all answers are clearly presented
• Time allowed: As per examination conditions
• Total marks: 100
SECTION A: MULTIPLE CHOICE QUESTIONS (15 MARKS)
1. A trial balance is used to:
A. Prepare cash flow statements
B. Check arithmetic accuracy of ledger accounts
C. Record sales only
D. Calculate tax
Answer B
Rationale: A trial balance ensures that total debits equal total credits.
, 2. If debits exceed credits, the trial balance shows:
A. Credit balance
B. Debit balance
C. No balance
D. Profit
Answer B
Rationale: The difference appears on the side with the higher total.
3. The trial balance is prepared from:
A. Income statement
B. Ledger accounts
C. Cash book only
D. Bank statement
Answer B
Rationale: It is extracted from the ledger balances.
4. A trial balance will NOT detect:
A. Mathematical errors
B. Equal debit-credit errors
C. Missing entries
D. Posting errors affecting both sides equally
Answer D
Rationale: Errors that still balance are not detected.
5. The main purpose of a trial balance is to:
A. Determine profit
B. Ensure ledger accuracy
C. Record cash transactions
D. Prepare invoices
Answer B
Rationale: It checks whether debit and credit totals agree.
