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Respected sir ,
I had a query , In Kaplan textbook in chapter 16 , suspense account and errorsUnder the heading ,
Errors where the trial balance still balances ;
-> Error of original entry states that :The correct double entry has been made but with the wrong amount
Whereas ,
Errors where trial balance does not balance states that
-> Debit and Credit entries have been posted but at different values
Now this both contradicts to each other
Could you please help me to understand this ?They do not contradict each other.
The first statement is saying that both entries are of the same amount, but that it is the wrong amount. Because the entries are both of the same amount, the trial balance will still balance.
The second entry is saying that the debit and credit entries are of different amounts and in that case the trial balance will not balance.
I do suggest that instead of spending time with the textbook you watch our free lectures on this. The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well. Our tutors are the most experienced tutors in the business having all taught for many many years for BPP and/or Kaplan 🙂
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