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Trial balance practice

Trial balance: practice with explained answers

You have read the lessons and want trial balance questions you have not seen before.

These eight questions follow the lessons in the trial balance guide. Write each answer on paper first, then open the answer. All amounts are in RM.

Questions

1. State whether each account normally has a debit or credit balance: Sales, Drawings, Rent expense, Creditors, Capital, Equipment.

Answer

Debit: Drawings, Rent expense, Equipment. Credit: Sales, Creditors, Capital. The usual wrong turn is placing Drawings with Capital.

2. The balances are: Bank 5 800, Debtors 3 600, Equipment 12 000, Purchases 9 500, Wages 2 700, Sales 14 900, Creditors 2 100, and Capital. Find the capital.

Answer

Debit: 5 800 + 3 600 + 12 000 + 9 500 + 2 700 = 33 600.

Credit without capital: 14 900 + 2 100 = 17 000.

Capital: 33 600 − 17 000 = 16 600.

3. A trial balance shows debits of 18 420 and credits of 18 240. List two quick facts about the difference that help you search.

Answer

The difference is 180. Half of it is 90, so look for a 90 balance on the wrong side. It also divides by 9 (180 ÷ 9 = 20), so a transposition such as 1 350 written as 1 530 is possible.

4. Which of these would stop a trial balance from agreeing? (a) a credit sale of 300 left out completely, (b) a debit of 450 with no matching credit, (c) 80 posted to the wrong expense account, (d) a balance of 700 added as 7 000.

Answer

(b) and (d) disturb agreement. Omission (a) and commission (c) leave both totals equal.

5. A telephone bill of 75 was debited to the Electricity account. Name the error and write the correcting entry.

Answer

Both are expenses, so this is an error of commission. Correcting entry: Debit Telephone 75, Credit Electricity 75.

6. Cash of 500 was paid to a creditor, but the entry was Debit Bank 500, Credit Creditors 500. Write the correcting entry.

Answer

This is a reversal, so the correction is for double the amount: Debit Creditors 1 000, Credit Bank 1 000. An entry of 500 leaves the books half wrong.

7. A trial balance has debits of 36 450 and credits of 36 200, so a suspense account is opened. Later a sale of 250 is found to have been debited to Debtors, with the credit to Sales left out.

Show the suspense balance and the correcting entry.

Answer

The credit column is short by 250, so suspense is a credit balance of 250.

Correcting entry: Debit Suspense 250, Credit Sales 250. Suspense becomes nil.

8. Equipment costing 2 000 was debited to Purchases, and the trial balance agrees.

What is the effect on profit, ignoring depreciation?

Answer

This is an error of principle. Purchases are overstated by 2 000, so profit is understated by 2 000. Correct by Debit Equipment 2 000, Credit Purchases 2 000.

If you got these wrong

Use the trial balance and adjustment explorer and timed practice builder to keep practising. A teacher can coach the order of checks in online one-to-one Accounting tuition.

Common questions

How should I use this practice set?

Attempt each question on paper before opening the answer. Compare your working line by line, and keep a list of the questions you missed. Retry them after a few days without looking at the answers.

Are these questions from real SPM papers?

No. Every question is written for this site with invented names and amounts. They practise the same skills, but the exam format is set by Lembaga Peperiksaan, so check the current format on the LP website.

What if I find the suspense questions hard?

Read the lesson on suspense accounts again, then check with your Accounting teacher whether the topic is part of your syllabus. The underlying skill, tracing a difference, is worth practising either way.

If a trial balance still will not agree under time pressure, a one-to-one Accounting teacher can watch you attempt one and show which check you skip.

  • Online one-to-one lessons for your child with an experienced teacher.
  • Your first class is a one-hour trial, from RM50. The fee is agreed before you book.
  • Happy with the teacher? Continue with lessons of about 1.5 hours. If not, ask for another teacher.