This is a question from the bpp kit :
The debit side of a trial balance totals $800 more than the credit side.
Which one of the following errors would fully account for the difference?
A) $400 paid for plant maintenance has been correctly entered in the cash book and credited to the plant asset account.
B) credit note issued to a customer of $400 has been debited to trade receivables.
C) A receipt of $800 for commission receivables has been omitted from the records.
D) The petty cash balance of $800 has been omitted from the trial balance.
The answer is B), but I think D) is correct too, why is it wrong?
Ask the Tutor ACCA FA
Trial balance
6y ago#1D is not correct.
Petty cash is an asset and so is a debit balance. If it is not on the trial balance then the debits will be too small and so the debit side will be lower than the credit side.
The debit side of a trial balance totals $800 more than the credit side.
Which one of the following errors would fully account for the difference?
A. $400 paid for plant maintenance has been correctly entered in the cash book and credited to the plant asset account.
B. Discount received $400 has been debited to discount allowed account
C. A receipt of $800 for commission receivable has been omitted from the records
D. The petty cash balance of $800 has been omitted from the trial balances
What is the second approach to such questions sir?
6y ago#3I do not know what you mean by 'the second approach'.
I explained the answer in my previous reply.
Have you watched my free lectures on the trial balance? The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.
Why B is the correct answer sir? Huhu I dont understand :(
1y ago#5If a credit note is given to a customer then receivables should be credited (because they will be owing less).
They have debited receivables and so instead of receivables being 400 lower they are 400 higher - so it means the debits are 800 higher than they should be.
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