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Rs. 1500 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. 3000 that the credit total.
- b)The debit total will be greater by Rs. 1500 that the credit total.
- c)Subject to other entries being correct the total will agree.
- d)None of the above.
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
Rs. 1500 received from sub-tenant for rent and entered correctly in th...
The correct option is A.
The correct journal entry should be
Cash Account Dr. 1500
To Rent Account 1500
The entry in the cash book was correct, but the rent account was debited, which is incorrect because it should have been credited. Since the amount which has to be credited is not credited but instead is debited. So first the error is to be rectified, that is it will be credited to nullify the effect and then it will be credited again which should have been the correct entry. This means that the amount credited is doubled which will be 3000.
Most Upvoted Answer
Rs. 1500 received from sub-tenant for rent and entered correctly in th...
Explanation:
To understand why the answer is option 'A', we need to know what a trial balance is and how it works.
Trial Balance:
A trial balance is a statement that shows the balances of all the ledger accounts in debit and credit columns. It is prepared to check the arithmetical accuracy of the ledger accounts. The total of the debit column should be equal to the total of the credit column.
Effect of the Error in Posting:
In the given scenario, the rent account is debited with Rs. 1500, which means that the rent account has increased by Rs. 1500. However, the cash account has also increased by Rs. 1500, but it is not recorded in the cash book. This error will affect the trial balance in the following ways:
• The rent account is debited, but the cash account is not credited, so the total of the debit column will be greater by Rs. 1500 than the credit column.
• As the cash account is not credited, the total of the credit column will be less by Rs. 1500 than the debit column.
• Therefore, the debit total will be greater by Rs. 3000 than the credit total.
Conclusion:
Hence, the correct answer is option 'A'.
To understand why the answer is option 'A', we need to know what a trial balance is and how it works.
Trial Balance:
A trial balance is a statement that shows the balances of all the ledger accounts in debit and credit columns. It is prepared to check the arithmetical accuracy of the ledger accounts. The total of the debit column should be equal to the total of the credit column.
Effect of the Error in Posting:
In the given scenario, the rent account is debited with Rs. 1500, which means that the rent account has increased by Rs. 1500. However, the cash account has also increased by Rs. 1500, but it is not recorded in the cash book. This error will affect the trial balance in the following ways:
• The rent account is debited, but the cash account is not credited, so the total of the debit column will be greater by Rs. 1500 than the credit column.
• As the cash account is not credited, the total of the credit column will be less by Rs. 1500 than the debit column.
• Therefore, the debit total will be greater by Rs. 3000 than the credit total.
Conclusion:
Hence, the correct answer is option 'A'.
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Community Answer
Rs. 1500 received from sub-tenant for rent and entered correctly in th...
Correct accounting entry will be as under:
Cash A/c Dr. 15001500
To Rent A/c 1500
Instead of crediting the Rent account by Rs.1500, it is wrongly debited by Rs.1500. Hence there will be a double affect.
In such case, the total of debit will be greater by Rs.3000 than the credit total.
Cash A/c Dr. 15001500
To Rent A/c 1500
Instead of crediting the Rent account by Rs.1500, it is wrongly debited by Rs.1500. Hence there will be a double affect.
In such case, the total of debit will be greater by Rs.3000 than the credit total.
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Rs. 1500 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 balancea)The debit total will be greater by Rs. 3000 that the credit total.b)The debit total will be greater by Rs. 1500 that the credit total.c)Subject to other entries being correct the total will agree.d)None of the above.Correct answer is option 'A'. Can you explain this answer?
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Rs. 1500 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 balancea)The debit total will be greater by Rs. 3000 that the credit total.b)The debit total will be greater by Rs. 1500 that the credit total.c)Subject to other entries being correct the total will agree.d)None of the above.Correct answer is option 'A'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Rs. 1500 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 balancea)The debit total will be greater by Rs. 3000 that the credit total.b)The debit total will be greater by Rs. 1500 that the credit total.c)Subject to other entries being correct the total will agree.d)None of the above.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Rs. 1500 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 balancea)The debit total will be greater by Rs. 3000 that the credit total.b)The debit total will be greater by Rs. 1500 that the credit total.c)Subject to other entries being correct the total will agree.d)None of the above.Correct answer is option 'A'. Can you explain this answer?.
Rs. 1500 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 balancea)The debit total will be greater by Rs. 3000 that the credit total.b)The debit total will be greater by Rs. 1500 that the credit total.c)Subject to other entries being correct the total will agree.d)None of the above.Correct answer is option 'A'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Rs. 1500 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 balancea)The debit total will be greater by Rs. 3000 that the credit total.b)The debit total will be greater by Rs. 1500 that the credit total.c)Subject to other entries being correct the total will agree.d)None of the above.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Rs. 1500 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 balancea)The debit total will be greater by Rs. 3000 that the credit total.b)The debit total will be greater by Rs. 1500 that the credit total.c)Subject to other entries being correct the total will agree.d)None of the above.Correct answer is option 'A'. Can you explain this answer?.
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