Day: April 25, 2024

The debit side of a trial balance totals £800 more than the credit side.

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

Select ONE answer:

1. £400 paid for plant maintenance has been correctly entered in the cash book and credited to the plant asset account.
2. Discount received of £400 has been debited to discount allowed account.
3. A receipt of £800 for rent receivable has been omitted from the records.
4. The petty cash balance of £800 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 2

1. Notcorrect
2. Correct  –  The discount received should have been credited to discounts received, so the effect is doubled. (1) would result in the credit side being £800 too high. (3) would have no effect at all. In (4) the credit side would be too high.
3. Not correct
4. Not correct

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