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CMA Foundation · Fundamentals of Financial and Cost Accounting · Adjustment Entries and Rectification of Errors

A trader's trial balance did not agree, and the shortfall on the credit side was placed in a Suspense Account. Which of the following errors would NOT affect the agreement of the trial balance?

Complete omission of a credit sale from the books does not affect trial balance agreement, because both the debit and the credit are left out. Errors of one-sided posting, wrong totals or unequal amounts on one side do make the trial balance disagree.

  1. APurchases book total was carried forward short by Rs 500
  2. BGoods sold to Mohan on credit were entirely omitted from the booksCorrect
  3. CSales returns of Rs 800 were posted to the credit of Sales Returns Account
  4. DRent paid of Rs 1,000 was debited to the Rent Account as Rs 100

Explanation

Omitting a transaction completely means neither debit nor credit is recorded, so the trial balance still agrees. The other options each create a one-sided posting or a one-sided amount difference, which disturbs the trial balance.

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