ACCA Applied Knowledge · Financial Accounting · Trial balance
A trial balance has total debits of $482,600 and total credits of $481,900. Which single error would fully explain the difference?
This item is flawed and should not be used.
- AA sale of $700 omitted from both the sales account and the receivables account
- BA payment of $350 to a supplier debited to the payables account and also debited to the bank account
- CA cash receipt of $700 from a customer credited to receivables but not debited to the bank accountCorrect
- DA purchase of $700 debited to the purchases account and credited to the payables account twice
Explanation
Debits exceed credits by $700, so a $700 credit is missing or a $700 debit is duplicated. Credit to receivables with no bank debit leaves a one-sided credit entry, which would make credits exceed debits, not debits; however it must be checked: the receivable credit is recorded, so credits are higher. Therefore this option is wrong in direction; the correct fit is the option with a one-sided debit of $700.
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