PRC-1 · Chapter 3 · Question 47 of 100
When extracting a trial balance for 'Star Merchants', which of the following groups of accounts will normally feature exclusively in the credit column?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Sales Revenue, Owner's Capital, and Trade Payables
Explanation
In a trial balance, credit balances represent incomes (Sales Revenue), equity (Owner's Capital), and liabilities (Trade Payables). The other options contain assets or expenses which carry debit balances.
More Ledgers and Trial Balance MCQs
- Q49At the end of the reporting period, 'Radiant Builders' has a credit balance of Rs. 75,000 in its 'Commission Received' account. How is…
- Q50The initial trial balance of 'Nova Traders' fails to agree. The total of the debit column is Rs. 1,540,000, and the total of the credit…
- Q51What is the primary purpose of extracting a trial balance at the end of an accounting period?
- Q52Which of the following accounts will normally present a debit balance in a trial balance?
- Q53If the bank account in the general ledger shows a credit balance brought down (Balance b/d), what does this signify?