Question

Given the following errors, identify the one by itself that will cause the trial balance to be out of balance.

Answer 1

Answer:

The correct answer is Option B.

Explanation:

(a) In this scenario, the appropriate entries should have been a debit to Salaries expense and a credit to Cash. Still, with the wrong posting the trial balance would still balance.

(b) Although the direction of the entries is correct, but there was an error in posting the number. The credit to Accounts receivable should have been $320 and not $32. So, the trial balance would be out of balance by $288.

(c) The entries are correct.

(d) This should have been a debit to Cash and a credit to Unearned revenue of $1,900. Still, with the wrong posting the trial balance would still balance.

(e) A credit should have been passed to Accounts receivable. The journals passed have no effect on Cash. Still, with the wrong posting the trial balance would still balance.