PRC-1 · Chapter 8 · Question 15 of 100
Which of the following errors will not cause the trial balance to be out of balance?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Complete reversal of a transaction
Explanation
A complete reversal of entries places the correct amounts on the wrong sides for both accounts. Because total debits still equal total credits, the trial balance will still agree.
More Correction of Errors MCQs
- Q17A cheque of Rs. 15,000 received from a customer, Ali, was correctly entered in the cash book but was posted to the credit of Umer's…
- Q18An invoice of Rs. 4,500 received from a supplier was initially recorded in the purchases day book as Rs. 5,400. This is an example of an:
- Q19Two independent errors of Rs. 1,000 occurring on opposite sides of the ledger, which cancel each other out, are known as:
- Q20The total of the sales day book was under-casted by Rs. 5,000. How does this affect the trial balance?
- Q21If a trial balance does not agree, the difference must initially be placed in a temporary account called the: