TRIAL BALANCE EXAM PAPER 2: 40 QUESTIONS WITH
FULL ANSWERS AND DETAILED RATIONALES
(INTERMEDIATE LEVEL REVISION & PRACTICE PACK)
Introduction
This Trial Balance Exam Paper 2 is an intermediate-level accounting assessment
designed to deepen students’ understanding of trial balance preparation, error
correction, suspense accounts, and adjustments affecting ledger accuracy. It builds
on foundational knowledge and introduces more complex accounting scenarios
involving omissions, misstatements, and rectification entries.
The paper strengthens analytical and problem-solving skills required for financial
accounting examinations and prepares students for advanced bookkeeping and
financial statement preparation.
Instructions
• Answer ALL questions in all sections
• Show all working for all calculation questions
• Select the correct option in multiple-choice questions
• Use correct accounting terminology throughout
• Ensure answers are clearly structured and accurate
• Time allowed: As per examination conditions
• Total marks: 100
SECTION A: MULTIPLE CHOICE QUESTIONS (15 MARKS)
1. A suspense account is used to:
A. Record profits
B. Temporarily balance trial balance differences
C. Record cash sales
D. Close accounts
Answer B
, Rationale: A suspense account is used to temporarily record differences
when the trial balance does not agree.
2. An error of commission occurs when:
A. No entry is made
B. Wrong account is used
C. Both sides are correct
D. Cash is missing
Answer B
Rationale: It occurs when an entry is posted to the wrong but similar
account.
3. An error of omission affects:
A. Only one account
B. Both accounts equally
C. Profit only
D. Cash only
Answer A
Rationale: The transaction is completely omitted from the records.
4. Which error will NOT affect trial balance agreement?
A. One-sided error
B. Equal debit and credit error
C. Missing entry
D. Wrong addition
Answer B
Rationale: If both sides are equally affected, totals still balance.
5. A correcting entry is made to:
A. Increase profit
B. Correct bookkeeping errors
C. Record sales
D. Prepare invoices
FULL ANSWERS AND DETAILED RATIONALES
(INTERMEDIATE LEVEL REVISION & PRACTICE PACK)
Introduction
This Trial Balance Exam Paper 2 is an intermediate-level accounting assessment
designed to deepen students’ understanding of trial balance preparation, error
correction, suspense accounts, and adjustments affecting ledger accuracy. It builds
on foundational knowledge and introduces more complex accounting scenarios
involving omissions, misstatements, and rectification entries.
The paper strengthens analytical and problem-solving skills required for financial
accounting examinations and prepares students for advanced bookkeeping and
financial statement preparation.
Instructions
• Answer ALL questions in all sections
• Show all working for all calculation questions
• Select the correct option in multiple-choice questions
• Use correct accounting terminology throughout
• Ensure answers are clearly structured and accurate
• Time allowed: As per examination conditions
• Total marks: 100
SECTION A: MULTIPLE CHOICE QUESTIONS (15 MARKS)
1. A suspense account is used to:
A. Record profits
B. Temporarily balance trial balance differences
C. Record cash sales
D. Close accounts
Answer B
, Rationale: A suspense account is used to temporarily record differences
when the trial balance does not agree.
2. An error of commission occurs when:
A. No entry is made
B. Wrong account is used
C. Both sides are correct
D. Cash is missing
Answer B
Rationale: It occurs when an entry is posted to the wrong but similar
account.
3. An error of omission affects:
A. Only one account
B. Both accounts equally
C. Profit only
D. Cash only
Answer A
Rationale: The transaction is completely omitted from the records.
4. Which error will NOT affect trial balance agreement?
A. One-sided error
B. Equal debit and credit error
C. Missing entry
D. Wrong addition
Answer B
Rationale: If both sides are equally affected, totals still balance.
5. A correcting entry is made to:
A. Increase profit
B. Correct bookkeeping errors
C. Record sales
D. Prepare invoices
