PRC-1 · Chapter 3 · Question 44 of 100
The trial balance of 'Crest Innovations' matches perfectly, with both debit and credit columns totaling Rs. 4.5 million. Which of the following errors could still exist within the accounting records despite this agreement?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) A cash payment for rent was posted to the debit side of the electricity expense account.
Explanation
Posting a debit entry to the wrong account but on the correct side (an error of commission or principle) does not affect the mathematical equality of total debits and total credits, so the trial balance will still agree.
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