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Trial Balance Errors For each of the following errors, considered individually, indicate whether the error would...

Trial Balance Errors

For each of the following errors, considered individually, indicate whether the error would cause the trial balance totals to be unequal. If the error would cause the trial balance totals to be unequal, indicate whether the debit or credit total is higher and by how much. If the debit and credit totals would be equal, enter zero ("0") in the amount box.

a. The payment of cash for the purchase of office equipment of $2,340 was debited to Land for $3,240 and credited to Cash for $3,240.

Which of the following is true?
The debit and credit totals of the trial balance would be equal.

If the totals on the trial balance are not equal, by how much is one column higher than the other?
$

b. A fee of $3,810 earned from a client was debited to Accounts receivable for $3,180 and credited to Fees Earned for $3,810.

Which of the following is true?
The credit column on the trial balance would be higher than the debit total.

If the totals on the trial balance are not equal, by how much is one column higher than the other?
$

c. A payment of $2,210 to a creditor was posted as a credit of $2,210 to Accounts Payable and a credit of $2,210 to Cash.

Which of the following is true?
The credit column on the trial balance would be higher than the debit total.

If the totals on the trial balance are not equal, by how much is one column higher than the other?
$

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Homework Answers

Answer #1
  • Answer [a]

Correct Answer is: Debit and Credit totals will be EQUAL because of this error.
This is because even though the amount debited and credited is MORE than the correct amount, the amount debited and credited is SAME.
Hence, Trial Balance totals will be equal.

  • Answer [b]
    Correct Answer: Credit column would be HIGHER than Debit Column.
    This is because amount credited $ 3810 is MORE than amount debited of $ 3180.
    Credit column would be higher by $ 630 than Debit column. [3810 – 3180]
  • Answer [c]
    Correct Answer :Credit column would be HIGHER than Debit Column.
    This is because amount credited $ 4420 [2210 + 2210] is MORE than amount debited of $ 0
    Credit column would be higher by $ 4420 than Debit column.
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