Double Entry Bookkeeping (part b) Lecture – F3 – Chapter 3

Hey John,

I’ve got a question about the lecture above. One little part has me slightly confused.

It’s about your example of errors which do not cause an imbalance on the trial balance. Referring to the last reason and the example @20:03. you state that 2 transactions below; would effectively cancel each other out because they are £900 difference each. A little confused as the first transaction would make the debit side £900 lower, and the 2nd transaction would also make the debit side £900 lower, therefore wouldn’t there be a £1800 excess on the credit side in the trial balance?

CR cash 1,000
DR car 100

and
DR cash 2500
CR sales 3400

Thanks in advance.