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CMA Foundation · Fundamentals of Financial and Cost Accounting · Trial Balance

Mehta Traders' trial balance shows total debits of Rs 4,86,000 and total credits of Rs 4,86,000. Which of the following errors would still remain undetected by this agreement?

The error of debiting Gupta & Co.'s personal account instead of the Purchases account would remain undetected. It is an error of principle where the debit and credit amounts are equal, so the trial balance still agrees. One-sided postings and wrong balance copying would disturb the totals.

  1. APurchases of Rs 8,000 from Gupta & Co. debited to Gupta & Co.'s account instead of the Purchases accountCorrect
  2. BSales book total of Rs 12,000 posted only on the credit side, with no debit anywhere
  3. CRs 5,000 received from a customer credited to the customer but not debited to the Cash account
  4. DWages account balance of Rs 7,500 carried to the trial balance as Rs 5,700

Explanation

Wrongly debiting Gupta & Co. instead of Purchases is an error of principle: a debit is still matched by the same credit, so the trial balance agrees. The other three options each create a one-sided posting or a wrong balance transcription, which would make the totals differ. Since the totals do agree, only the first error can remain hidden.

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