Question

A student remembered that the side toward the window in the classroom was the debit side of an account. The student took an examination in a room where the windows were on the other side of the room and became confused and consistently reversed debits and credits. Would the student’s trial balance have equal debit and credit totals? If there were no existing balances in any of the accounts to begin with, would the error prevent the student from preparing correct financial statements? Why?

Answer 1

Store equipment was purchased for $2,000. Instead of debiting the Store Equipment account, the debit was made to Delivery Equipment. Of what help will the trial balance be in locating this error?

Answer 2

Store equipment was purchased for $2,000. Instead of debiting the Store Equipment account, the debit was made to Delivery Equipment.