What are the objectives of preparing trial balance?

What are the limitations of trial balance?

'A trial balance is only a prima facie evidence of the arithmetical accuracy of records'. Do you agree with this statement? Give reasons.

From the following balances extracted from the books of Mr Kannan at trader on automobiles, prepare trial balance as on 31^st March 2017.

	Rs		Rs
Cash ih hand	5,500	Direct expenses	5,000
Discount received	300	Carriage outwards	3,500
Creditors	15,000	Capital	45,000
Buildings	50,000	Purchases	49,700
Opening stock	6,000	Sales	59,000

From the following balances extracted from the books of Mrs. Umashankar a trader, prepare trial balance as on 31.03.2015.

	Rs		Rs
Capital	44,000	Interested on investment	2,000
Bills receivable	5,000	Customs duty	3,000
Wages	800	Computer	20,000
Drawings	4,000	Sales	72,000
Purchases	75,000	Opening stock	10,200

The following trial balance has certain errors. Redraft it.

S.No	Name of account	L.F	Debit balance  Rs.	Credit balance  Rs.
1	Building		60,000
2	Machinery		17,000
3	Returns outward		2,600
4	Bad debts		2,000
5	Cash		400
6	Discount received		3,000
7	Bank overdraft		10,000
8	Creditors		50,000
9	Purchases		1,00,000
10	Capital			72,800
11	Fixtures			5,600
12	Sales			1,04,000
13	Debtors			60,000
14	Interest received			2,600
	Total		2,45,000	2,45,000

The following balances are extracted from the books of Murali, as on 31st March, 2017. Prepare trial balance.

Particulars	Rs	Particulars	Rs
Sales	35,000	Audit fees	1,000
Interest paid	350	Octroi duty	8,000
Returns inward	2,500	Land	90,000
Depreciation	2,400	Capital	60,000
Office rent	2,000	Bank overdraft	11,250

Explain the need for preparing trial balance.

Explain the features of trial balance.

What is Suspense Account? When is it opened?