Question

For each situation listed below, indicate the effect on the debit and credit column of the trial balance.a. Journal entry for sale on account was posted for $3,000 rather than $300. b. Cash balance was entered in credit column. Total column wasn't added correctly. c. Debits should have totaled $50,000 but accountant calculated $55,000. d. Revenue account balance entered in debit column rather than the credit column. d. Accounts Payable balance was entered in wrong column. Account had normal balance.

Answer 1

Answer and Explanation:

The indication of the following transactions are as follows in the trail balance

Particulars          Debit                   Credit

a.                     Overstated            Overstated

b.                     Understated          Overstated

c,                     Overstated             No effect

d.                    Overstated            Understated

e.                    Overstated            Understated      

These are the effects for each of the given transaction