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CMA Foundation · Fundamentals of Financial and Cost Accounting · Adjustment Entries and Rectification of Errors

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

Debiting office furniture of ₹20,000 to the Purchases account does not affect the trial balance. A debit is still matched by an equal credit, so the totals agree. It is an error of principle, whereas the other options create a one-sided difference.

  1. APurchases of ₹5,000 posted to the Purchases account as ₹500
  2. BSales Book total undercast by ₹1,000
  3. CPurchase of office furniture ₹20,000 debited to Purchases accountCorrect
  4. DCash received from a debtor posted to the credit side of the debtor's account twice

Explanation

Debiting Purchases instead of Furniture keeps the debit and credit amounts equal, so it is an error of principle (capital expenditure treated as revenue) and the trial balance still agrees. The other three errors involve a one-sided amount or wrong figure, which causes a trial balance difference.

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