ACCA Applied Knowledge · Financial Accounting · Correction of errors
A credit sale of $540 to customer Lopez was correctly entered in the sales account but was debited to the account of customer Lopes, another customer, in the receivables ledger. Which statement is correct?
It is an error of commission and the trial balance still agrees. The debit was posted to a wrong account of the same class, another customer's receivable account, and equal debits and credits were still recorded.
- AThe error is an error of original entry and the trial balance will not agree
- BThe error is an error of commission and the trial balance will still agreeCorrect
- CThe error is an error of omission and the trial balance will not agree
- DThe error is an error of reversal and the trial balance will still agree
Explanation
The correct amount was debited to a receivables account, but to the wrong customer, which is the same class of account. That is an error of commission. Debits still equal credits, so the trial balance agrees.
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