correction of error

This topic has 3 replies, 2 voices, and was last updated 8 months ago by John Moffat.

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October 9, 2021 at 2:30 am #637275
jcafelatte
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the debit side of a trial balance totals $50 more than the credit side. which of the following could it be due to?

A. a purchase of goods for $50 being omitted from the payables control account
B. a sales of goods for $50 being omitted from the receivables control account
C. an invoice of $25 for electricity being credited to the electicity account
D. a receipt of $50 from a customer being omitted from the cash book

For A, i know its because there should be a credit in the payables control account. if credit is missing then the total credits will be too low hence total debits will be higher than total credits. but i dont understand how the lower in credits in the payables control account can lead to a lower in credits in the trial balance. mr john moffat kindly pls explain thank you
October 9, 2021 at 7:58 am #637283
John Moffat
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The trial balance is a list of the balances on the accounts.

The balance on the payables account is always a credit balance, and if a credit of $50 is missing from the account then the credit balance will be $50 lower than it should be.

Therefore the total of the credit balances on the trial balance will be $50 too low, and the debit side will be $50 higher than the credit side.
October 9, 2021 at 11:16 am #637338
jcafelatte
- Topics: 14
- Replies: 8
okay. but can you explain the options A B C D one by one ? especially like what are the double entries …. because i really not sure how to do it and what they are. thank you.
October 9, 2021 at 2:14 pm #637347
John Moffat
Keymaster
- Topics: 57
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It is obvious that you are not watching our free lectures, otherwise you would know what all of the entries were. It is completely pointless attempting questions until you have finished studying all the topics.

I will answer this question, but I am not prepared to answer more questions like this. If you are not prepared to watch the lectures then you cannot expect me to be prepared to type out the lectures here.

The correct entries should have been:

A: Dr Purchases; Cr Purchase ledger control
B: Dr Receivables ledger control; Cr Sales
C: Dr Electricity; Cr Cash
D: Dr Cash; Cr Sales (if a cash sale) or Cr Receivables (if it had been a credit sale).
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