PRC-1 · Chapter 3 · Question 91 of 100
An invoice for Rs. 7,400 was correctly entered into the sales day book as Rs. 4,700. It was subsequently posted to the ledgers as Rs. 4,700. Will the trial balance agree?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Yes, because this is an error of original entry affecting both sides equally.
Explanation
An error of original entry means the wrong amount was entered at the very beginning of the process. Because the same wrong amount (4,700) is debited and credited, the trial balance will still perfectly agree.
More Ledgers and Trial Balance MCQs
- Q93A business spent Rs. 10,000 on routine repairs for a machine and debited the Machinery (asset) account. What type of error is this?
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- Q96The correct double-entry for purchasing office stationery using physical cash is:
- Q97Which of the following lists contains ONLY accounts that normally carry a debit balance?