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Dear Sir,
Please help me explain the answer to this question“Which TWO of the following errors could cause the total of the debit column and the
total of the credit column of the trial balance not to agree?
A A casting error of $300 made when totalling the sales day book.
B A transposition error made when posting the total of cash payments into the general
ledger.
C Discount received was included in the trial balance as a debit balance.
D A cheque paid to a supplier recorded was debited to cash and correctly recognised in
trade payables”The correct answers are C and D. But I don’t understand why B isn’t the correct answer, and could you explain the relationship between general ledger and trial balance?
Thank you!
The trial balance is a list of the balances in the general (nominal) ledger.
B implies that they have posted the wrong figure in both of the accounts, in which care the trial balance will still balance.
I do suggest that you watch my free lectures on Books of Prime Entry. The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.
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