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Bumbly Co extracted the trial balance for the year ended 31 December 20X7. The total of the debits exceeded the credits by $300.
Which of the following could explain the imbalance?
A /Sales of $300 were omitted from the sales day book
B /Returns inward of $150 were extracted to the debit column of the trial balance
C/Discounts received of $150 were extracted to the debit column of the trial balance
D/The bank ledger account did not agree with the bank statement by a debit of $300I understand why the answer is C but wouldn’t the Answer A also contribute? Isnt Sales a credit so its ommision would cause credits to be lower than debits by $300 also?
Thanks guys.
It’s sales DAY book. Not sales ledger. Sales day book is not included in the trial balance bro. Do read up on bpp textbook. Understanding the book of prime entry should help. Cheers!
Leong is correct – the sales day book is simply a list. We take the total from this book and the dr and cr in the ledger accounts. If the total of the book is wrong then both the dr and cr in the t accounts will be wrong, but because they will be the same the trial balance would still balance.
Better than reading the BPP book (or any book) will be to watch my lecture on here on books of primed entry.
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