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

Which one of the following errors will NOT affect the agreement of the Trial Balance?

Debiting furniture purchase to the Purchases Account does not affect the Trial Balance, because it is an error of principle where the same amount is debited, only to the wrong account. Under-casting, double credit posting and posting to the wrong side upset the totals.

  1. ASales book total under-cast by ₹5,000
  2. BPurchase of furniture ₹8,000 debited to Purchases AccountCorrect
  3. CCash received from a customer posted to the credit side of his account twice
  4. DDiscount allowed of ₹300 posted to the credit side of Discount Account

Explanation

Debiting Purchases instead of Furniture is an error of principle (wrong account, same side), so total debits still equal total credits. The other three involve only one side of an entry or a wrong side, so the Trial Balance will disagree.

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