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correction of errors 2

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › correction of errors 2

  • This topic has 1 reply, 2 voices, and was last updated 10 years ago by John Moffat.
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  • April 30, 2015 at 5:35 pm #243413
    Anonymous
    Inactive
    • Topics: 17
    • Replies: 36
    • ☆☆

    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?

    April 30, 2015 at 6:21 pm #243423
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54709
    • ☆☆☆☆☆

    You have asked this in the other F3 forum and I have answered it there 🙂

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