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17.4 The debit side of a trial balance totals $50 more than the credit side. Which one of the following could this be due to?
A) A purchase of goods for $50 being omitted from the payables control account
B) A sale of goods for $50 being omitted from the receivables control account
C) An invoice of $25 for electricity being credited to the electricity account
D) A receipt for $50 from a customer being omitted from the cash book
The answer is A).
The entry should have been,
Dr Purchases $50
Cr Payables $50As Purchases are debited with $50, hence the expenses are increased by $50, while Payables aren’t credited (since its omitted from A/P), meaning Liabilities aren’t increased by $50.
As Expenses are on the debit side of TB and Liabilities are on the credit side of TB, hence the Debit side is $50 less than the Credit side.
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