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A Trial balance will not balance if
- a)correct journal entry is posted twice.
- b)The purchase on credit basis is debited to purchases and credited to cash.
- c)Rs. 500 cash payment to creditors is debited to creditors for Rs. 50 and credited to cash as Rs.500.
- d)None of the above.
Correct answer is option 'C'. Can you explain this answer?
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Most Upvoted Answer
A Trial balance will not balance ifa)correct journal entry is posted t...
Explanation:
A trial balance is a statement that lists all the ledger accounts and their balances to check whether the total debits equal the total credits. If the trial balance does not balance, it indicates that there is an error in the accounting records.
The correct journal entry posted twice will not affect the trial balance because it will be recorded as equal debits and credits. Similarly, if a purchase on credit is debited to purchases and credited to cash, it will not affect the trial balance because the total debits and credits will remain the same.
However, if a cash payment to creditors is debited to creditors for Rs. 50 and credited to cash as Rs. 500, it will cause an imbalance in the trial balance. This is because the total debits and credits will not match, and the difference will be equal to the amount of the error, which in this case is Rs. 450.
Therefore, option C is the correct answer.
In summary, the reasons why a trial balance will not balance are:
- Posting the correct journal entry twice (will not affect the trial balance)
- Debiting a purchase on credit to purchases and crediting it to cash (will not affect the trial balance)
- Debiting a cash payment to creditors for a lesser amount and crediting it to cash for a higher amount (will cause an imbalance in the trial balance)
A trial balance is a statement that lists all the ledger accounts and their balances to check whether the total debits equal the total credits. If the trial balance does not balance, it indicates that there is an error in the accounting records.
The correct journal entry posted twice will not affect the trial balance because it will be recorded as equal debits and credits. Similarly, if a purchase on credit is debited to purchases and credited to cash, it will not affect the trial balance because the total debits and credits will remain the same.
However, if a cash payment to creditors is debited to creditors for Rs. 50 and credited to cash as Rs. 500, it will cause an imbalance in the trial balance. This is because the total debits and credits will not match, and the difference will be equal to the amount of the error, which in this case is Rs. 450.
Therefore, option C is the correct answer.
In summary, the reasons why a trial balance will not balance are:
- Posting the correct journal entry twice (will not affect the trial balance)
- Debiting a purchase on credit to purchases and crediting it to cash (will not affect the trial balance)
- Debiting a cash payment to creditors for a lesser amount and crediting it to cash for a higher amount (will cause an imbalance in the trial balance)
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Community Answer
A Trial balance will not balance ifa)correct journal entry is posted t...
The tb doesn't tally because different amounts are posted in the ledger- 50 and 500. Debit is not equal to credit
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A Trial balance will not balance ifa)correct journal entry is posted twice.b)The purchase on credit basis is debited to purchases and credited to cash.c)Rs. 500 cash payment to creditors is debited to creditors for Rs. 50 and credited to cash as Rs.500.d)None of the above.Correct answer is option 'C'. Can you explain this answer?
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