1.A $1,000 collection of an account receivable was erroneously posted as a debit

Question

1.A $1,000 collection of an account receivable was erroneously posted as a debit to Accounts Receivable and a credit to Cash
2.The purchase of office supplies on account for $3,250 was erroneously recorded in the journal as $2,350 debit to Office Supplies and credit to Accounts Payable
3.A $50 cash receipt for the performance of a service was not recorded at all
The purchase of office equipment for $1,200 was posted as a debit to Office Supplies and a credit to Cash for $1,200
4.The cash payment of a $750 account payable was posted as a debit to Accounts Payable and a debit to Cash for $750

Explanation / Answer

In which of the following situations would the trial balance not balance? A) A $1,000 collection of an account receivable was erroneously posted as a debit to Accounts Receivable and a credit to Cash. B) The purchase of office supplies on account for $3,250 was erroneously recorded in the journal as $2,350 debit to Office Supplies and credit to Accounts Payable. C) A $50 cash receipt for the performance of a service was not recorded at all. D) The cash payment of a $750 account payable was posted as a debit to Accounts Payable and a debit to Cash for $750. The trial balance would always be balanced if an amount is debited (whether it is the correct account or not) and credited (whether it is the correct account or not) at the same amount. That is why a 'balanced' trial balance does not assure the validity or accuracy of the amounts of the reported accounts. Answer D is correct because both amounts are debited making the trial balance not in balanced

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.