Question 5.
Which of the following errors will affect the Trial Balance?
(i) The total of the Sales Book has not been posted to the Sales Account.
(ii) ₹ 1,000 paid as installation charges of a new machine has been debited to Repairs Account.
(iii) Goods costing ₹ 4,000 taken by the proprietor for personal use have debited to Debtors Account.
(iv) ₹ 1,000 paid for repairs to building have been debited to Building Account.
Answers
1. This transaction will affect the Trial balance as the sales account is understated.
2. It will impact the Trial Balance
3. It will impact the Trial Balance
4. It will affect the Trial Balance
Explanation:
1.
Wrong entry
Debtors A/c...................Dr XXX
To Sales A/c...................Cr XXX
Correct Entry
Suspense A/c...................Dr XXX
To Sales A/c........................Cr XXX
This transaction will affect the Trial balance as the sales account is understated.
2.
Wrong entry
Repairs A/c...................Dr Rs 1,000
To Cash A/c...................Cr Rs 1,000
Correct Entry
Machinery A/c...................Dr Rs 1,000
To Repairs A/c........................Cr Rs 1,000
It will affect the Trial Balance
3.
Wrong entry
Debtors A/c...................Dr Rs 4,000
To Purchases A/c...................Cr Rs 4,000
Correct Entry
Drawings A/c.................Dr Rs 4,000
To Debtors A/c..............Cr Rs 4,000
It will affect the Trial Balance
4.
Wrong entry
Building A/c...................Dr Rs 1,000
To Cash A/c........................Cr Rs 1,000
Correct Entry
Repairs A/c...................Dr Rs 1,000
To Building A/c...................Cr Rs 1,000
It will affect the Trial Balance
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