ExpertMedium2 marksMultiple Choice
ACCA · Question 27 · Preparing a Trial Balance
Section A
Which of the following errors would cause the trial balance totals to be unequal?
Section A
Which of the following errors would cause the trial balance totals to be unequal?
Answer options:
A.
A cash sale of $200 was completely omitted from the accounting records.
B.
A purchase of equipment for $1,000 was debited to the purchases account instead of the equipment account.
C.
A payment for rent of $500 was credited to the bank account and credited to the rent account.
D.
A receipt from a customer of $300 was debited to the bank account as $30 and credited to receivables as $30.
How to approach this question
Look for an error that breaks the fundamental accounting equation (Debits = Credits). Two credits mean the credit side will be higher than the debit side.
Full Answer
C.A payment for rent of $500 was credited to the bank account and credited to the rent account.✓ Correct
A trial balance will fail to agree if the total debits entered do not equal the total credits entered. Crediting both the bank and the rent account means $1,000 of credits were recorded with zero debits, throwing the trial balance out by $1,000. The other options are errors of omission, principle, and original entry, which do not affect the trial balance agreement.
Common mistakes
Assuming an error of principle (wrong account type) causes the trial balance to fail.
Practice the full ACCA FA — Financial Accounting Practice Exam 6
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