ACCA Applied Knowledge · Financial Accounting · Correction of errors
Which one of the following errors would cause the trial balance totals to disagree?
The payment recorded with a debit to rent and a debit to bank causes disagreement. Two debits with no matching credit make debits exceed credits. The other errors either omit both sides, use equal wrong amounts, or post a balanced entry to a wrong account.
- AA cash purchase of $800 recorded by debiting purchases and crediting payables
- BA payment of $300 for rent recorded by debiting rent and debiting bankCorrect
- CAn invoice of $650 omitted entirely from the books
- DA sale of $900 recorded as $90 in both the sales account and the receivables account
Explanation
Debiting both rent and bank gives two debits and no credit, so debits exceed credits by $600 (two debits of $300 and no credit). The others balance: the first is a wrong account in the same entry, the third is omission of both sides, and the fourth is an original entry error with equal amounts.
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