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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › correction of errors 2
An organisation restores its petty cash balance to $250 at the end of each month. During October total expenditure column in the petty cash book was calculated as being $210, and the impress restored by this amount. The analysis columns posted to the nominal ledger totalled only $200
Which one of the following would this error cause?
A The trial balance being $10 higher on the debit side
B The trial balance being $10 higher on the credit side
C No imbalance in the trial balance
D The petty cash balance being $10 lower than it should be
The answer is B but im not sure why it is not A because doesn’t this mean there is $10 more on the debit side than the credit side? petty cash is an asset account?
You have asked this in the other F3 forum and I have answered it there 🙂