Question

Under which of the following conditions
would a trial balance still balance?
l.A transaction was completely left
out.
ll.Both a debit.and credit entry were
overstated by the same amount.
lll.A debit entry was left out.
lV.Both a debit and credit entry were
understated by the same amount.
(a)I, II and Ill only
(b)I, II and IV only
(c)l, Ill and IV only
(d)II, llI and IV only

Answer 1

Answer:

(b) I, II, IV only.

First error is a complete error of omission. Here Trial balance matches.

Second error and forth error are both error of compensating. Here trial balance matches.

Third error is an error of complete omission. Here trial balance doesn't match.

I hope it helps :)