ACCA Applied Knowledge · Financial Accounting · Trial balance
Which of the following is an error that a trial balance will NOT reveal?
Debiting the purchase of equipment to the repairs expense account is an error of principle. Both the debit and credit are for the same amount, so the trial balance still balances, although profit and assets are misstated. Omitting a balance, transposing digits or using the wrong column all create a difference.
- AOmission of a closing balance from the trial balance listing
- BA sales ledger balance of $6,200 entered in the trial balance as $2,600
- CA credit balance listed in the debit column
- DA purchase of equipment of $5,000 debited to the repairs expense accountCorrect
Explanation
Debiting equipment cost to repairs is an error of principle: both sides of the entry are for $5,000, so the totals still agree even though profit is understated and assets are understated. The other options would each produce unequal column totals.
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More Trial balance questions
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