PRC-1 · Chapter 3 · Question 25 of 100
After extracting a trial balance, the accountant of 'Dynamic Corp' notices the debit column totals Rs. 500,000 and the credit column totals Rs. 490,000. Which single error could theoretically have caused this Rs. 10,000 discrepancy?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) A cash receipt of Rs. 10,000 was debited to cash but completely failed to be credited to the sales account.
Explanation
If a transaction is debited but the corresponding credit is omitted, the debit side of the trial balance will be heavier than the credit side by exactly that amount (Rs. 10,000).
More Ledgers and Trial Balance MCQs
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