nicky123

Please give me the answer as well as the explanation for this question!

The following errors at the end of the month have been found: a purchase invoice for $25.5 has been completely overlooked; a rent payment of $763 has been posted to rent account as $763; a refund paid to a customer for $27 has been omitted form receivables ledger control accuont. How will these errors have affect on the trail balance?

A. $54 short debit
B. $54 short credit
C. The trail balance will balance
D. $52.5 short debit

Thanks a lot

acca

Originally Posted by nicky123

a rent payment of $763 has been posted to rent account as $763

are you sure about that ?


or is at 736 ?????

__________________

nicky123

sorry for my wrong-typing!!!

Quote:

Quote: Originally Posted by nicky123 View Post a rent payment of $763 has been posted to rent account as $763 are you sure about that ? or is at 736 ?????

a rent payment of $736 has been posted to rent account as $763

please hepl me with this!! Thanks!!

bawazir

hi
i found very useful notes : all the following notes not affect the trail balance:

Error of Omission – when a transaction is completely omitted from the books

Error of Commission-when an entry has been posted to the correct side of the Ledger but to the wrong account

Error of Principle-where a transaction has been treated incorrectly as capital expenditure instead of revenue expenditure

Compensating errors-where an error on the debit side is compensated by an error of equal amount on the credit side.

Error of Original entry-a wrong amount is recorded in the subsidiary book and posted to the accounts.

Complete Reversal Of Entries-where the correct accounts are used but each item is shown on the wrong side of the account.

if you read the above notes carfuly then you can find the answer easy.

best regards
bawazir

nicky123

Thanks for your hepl Bawazir! Best wish to you !!!