Day: April 19, 2024

The credit side of a trial balance totals £400 more than the debit side.

Which of the following errors would fully account for the difference?

Select ONE answer:

1. £200 paid for coffee machine repairs has been correctly entered in the cash book and credited to the coffee machine account.
2. Discount received £200 has been debited to the discount allowed account.
3. A receipt of £400 for commission receivable has been omitted from the records.
4. The petty cash balance of £200 has been omitted from the trial balance.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct – The payment should have been debited not credited so the credit side is too high by £400. In (2) discount received £200 has been debited when it should have been credited, so debits are £400 higher. (3) has no effect on the TB balancing. (4) means that credits are too high, but only by £200
2. Not correct
3. Not correct
4. Not correct

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