ACCA Applied Knowledge · Financial Accounting · Trial balance
A trial balance has total debits of $482,600 and total credits of $481,200. Which single error would fully explain the difference?
The trial balance has $1,400 more debits than credits. A purchase debited to the purchases account with no credit entry raises debits only by $1,400, exactly explaining the difference. Errors affecting both sides equally would not cause an imbalance.
- AA sale of $1,400 was omitted from both the sales ledger and the sales account
- BA purchase of $1,400 was debited to the purchases account but credited to nothingCorrect
- CCash received of $700 was debited to the bank account and credited to the receivables account twice
- DA $1,400 expense was debited to the correct account and also credited to the correct account
Explanation
Debits exceed credits by $1,400. Debiting purchases with no matching credit adds $1,400 to debits only, producing exactly this difference. An omission from both sides leaves the trial balance balanced. A $700 error creates the wrong amount, and a full debit and credit entry balances.
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