Question

Example Exercise 2-6 Trial Balance Errors 4 For each of the following errors, considered in- dividually, indicate whether the error would cause the trial balance totals to be unequal. If the error would cause the trial balance totals to be unequal, indicate whether the debit or credit b. A fee of $2,850 earned from a client was debited to Accounts Receivable for $2,580 and credited to Fees Earned for $2,850 c. A payment of $3,500 to a creditor was posted as a debit of $3.500 to Accounts Payable and a debit of $3,500 to Cash total is higher and by how much. a. Payment of a cash withdrawal of $5.600 was journalized and posted as a debit of $6,500 to Salary Expense and a credit of $6,500 to Cash.

Answer 1

Note The trial balance has two sides, the debit and the credit side. The debit side and credit side must balance.lf the debit side is not equal to credit side then the trial balance is called unbalanced trial balance.Atrial balance ml/ht nui balance due variety ui reas()n% such as : debit in ,ann that should have been credited, transposition errors(Eg: $785 is entered as $758) etc. Requirement a. The totals are equal since both the debit and credit entries were journalized and posted for $6,500. (Debited amount and credited amount are same that is $6,500) Requirement b. The totals are unequal.The credit total is higher by $270 (Credited amount $2,850 Minus Debited amount $2,580) Requirement c. The totals are unequal. The debit total is higher by $7,000 ($3,500 $ 3,500).After debiting $3,500 to Accounts payable, cash account should have been credited. But here Cash account is debited by $3,500.So total debit was $7,000 (S3,500+3,500) higher than credit.