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The trial balance of Kiran Stores shows debits of Rs 7,85,000 and credits of Rs 7,62,000. It is found that a sale of Rs 11,500 was correctly entered in the sales book but posted to the Sales Account on the debit side instead of credit. After correcting only this error, what is the difference between the two sides?

The difference becomes nil. Wrongly debiting sales of Rs 11,500 overstated debits and understated credits by that amount, so corrected debits and credits are both Rs 7,73,500. The original gap of Rs 23,000 was twice the error amount, and the correction removes it fully.

  1. ARs 23,000 with debit higher
  2. BRs 11,500 with debit higher
  3. CNilCorrect
  4. DRs 11,500 with credit higher

Explanation

Sales were wrongly debited, so debits are overstated by 11,500 and credits understated by 11,500. Correct debits = 7,85,000 - 11,500 = 7,73,500. Correct credits = 7,62,000 + 11,500 = 7,73,500. The totals now agree, so the difference is nil. The original gap of 23,000 was exactly twice 11,500.

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