PRC-1 · Chapter 3 · Question 58 of 100
A business extracts its trial balance, and the debit side is Rs. 5,000 higher than the credit side. Which of the following errors could exclusively cause this imbalance?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) A receipt of Rs. 5,000 was debited to Cash but not credited to the customer's account.
Explanation
If a transaction is recorded with a debit but the corresponding credit is missing, the total debits will exceed total credits by exactly that amount, causing the trial balance to disagree.
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