Day: April 23, 2024

Which of the following errors would cause a trial balance imbalance?

Select ONE answer:

1. The discounts received column of the cash book was overcast
2. Cash paid for the purchase of office furniture was debited to the general expenses account
3. The discounts allowed column of the cash book was undercast
4. A cheque paid for general expenses was correct in the cash book and was credited to non-current assets

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

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

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct – A cheque paid should be debited to an asset or expense account. In (1) and (3) if thew discounts columns of the cash book were wrongly totalled this would affect both the debit and the credit when posted. In (2) Cash paid for the purchase of office furniture was debited to the general expenses account- both a debit and a credit have been made even though the debit was to the wrong account.

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