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Rs 500 received from sub-tenant for rent and entered correctly in the cash book is posted to the debit of the rent account. In the trial balance. a) The debit total will be greater by Rs 1,000 than the credit total b) The debit total will be greater by Rs 500 than the credit total c) Subject to other entries being correct, the total of trial balance will agree d) None of above?
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Rs 500 received from sub-tenant for rent and entered correctly in the ...
Effect of Rs 500 rent received from sub-tenant on trial balance


When Rs 500 rent received from sub-tenant is entered correctly in the cash book, but posted to the debit of the rent account, it results in an error in the trial balance.


Explanation:



  • The correct entry for this transaction would be to debit the cash account and credit the rent account.

  • However, mistakenly, the rent account is debited instead of being credited.

  • As a result, the debit side of the trial balance will be overstated by Rs 500.

  • The credit side of the trial balance will remain unaffected.

  • Therefore, option (b) - The debit total will be greater by Rs 500 than the credit total - is the correct answer.

  • However, if all other entries are correct, the total of the trial balance will still agree.

  • This is because the error will be compensated by an equal and opposite error in the rent account.

  • The rent account will show a debit balance of Rs 500, which should have been a credit balance.

  • Therefore, the trial balance will still tally, but the individual accounts will show incorrect balances.

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Rs 500 received from sub-tenant for rent and entered correctly in the cash book is posted to the debit of the rent account. In the trial balance. a) The debit total will be greater by Rs 1,000 than the credit total b) The debit total will be greater by Rs 500 than the credit total c) Subject to other entries being correct, the total of trial balance will agree d) None of above?
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Rs 500 received from sub-tenant for rent and entered correctly in the cash book is posted to the debit of the rent account. In the trial balance. a) The debit total will be greater by Rs 1,000 than the credit total b) The debit total will be greater by Rs 500 than the credit total c) Subject to other entries being correct, the total of trial balance will agree d) None of above? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Rs 500 received from sub-tenant for rent and entered correctly in the cash book is posted to the debit of the rent account. In the trial balance. a) The debit total will be greater by Rs 1,000 than the credit total b) The debit total will be greater by Rs 500 than the credit total c) Subject to other entries being correct, the total of trial balance will agree d) None of above? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Rs 500 received from sub-tenant for rent and entered correctly in the cash book is posted to the debit of the rent account. In the trial balance. a) The debit total will be greater by Rs 1,000 than the credit total b) The debit total will be greater by Rs 500 than the credit total c) Subject to other entries being correct, the total of trial balance will agree d) None of above?.
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