Forums › FIA Forums › FA1 Recording Financial Transactions Forums › How will these errors have affected the trial balance?
- This topic has 2 replies, 3 voices, and was last updated 8 years ago by jackiek13.
- AuthorPosts
- July 12, 2016 at 7:16 am #325536
You have discovered the following errors at the end of the month:
1/ A purchase invoice for $25.50 has been completely overlooked
2/ A rent payment of $736 has been posted to the rent account as $763
3/ A refund paid to a customer for $27 has been omitted from the receivable ledger control account.
How will these errors have affected the trial balance?
A. $54 short debit.
B. $54 short credit.
C. The trial balance will balance.
D. $52.50 short debit.The answer is C.
I have solved this problem:
1/ Comletely overlooked Invoice –> Make no effect.
2/ Dr Rent account $763 –> Wrong
Cr Cash $736 –> Right
=> Dr > Cr : $273/ Omitted refund in AR control account
Dr Sale $27 –> Have posted
Cr AR $27 –> Omitted
=> Dr > Cr : $27So, in total, debit side is exceeded $27 to Credit side.
And the answer is A ???Please show me where I was wrong.
Thank you 🙂August 16, 2016 at 5:37 pm #3336531. is error of omission so no entry is made for that transaction.
2. dr cash 27$ cr rent 27$ (wouldnt make difference in trial balance both are on same Debit side)
3. dr sales 27$ cr receivables control account 27$ (double entry is complete)August 31, 2016 at 9:44 pm #336643It will balance because on the suspense account you will have a credit entry of $27 Debit the rent account, credit the suspense account for overstated payment. And then the refund will be Credit the Receivable Control Account debit the Suspense Account so they cancel each other out.
You have an error of omission
An error of transposition
A one sided error of omission. - AuthorPosts
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