Question

In: Accounting

Identify which error will cause the trial balance to be out ofbalance.A $115 cash...

Identify which error will cause the trial balance to be out of balance.

  • A $115 cash receipt from a customer in payment of her account posted as a $115 debit to Cash and a $115 credit to Cash.

  • A $180 cash receipt from a customer in payment of her account posted as a $180 debit to Cash and a $18 credit to Accounts Receivable.

  • A $74 cash purchase of office supplies posted as a $74 debit to Office Equipment and a $74 credit to Cash.

  • A $280 cash salary payment posted as a $280 debit to Cash and a $280 credit to Salaries Expense.

  • An $1,200 prepayment from a customer for services to be rendered in the future was posted as an $1,200 debit to Unearned Revenue and an $1,200 credit to Cash.

Solutions

Expert Solution

Answer ; A $180 cash receipt from a customer in payment of her account posted as a $180 debit to Cash and a $18 credit to Accounts Receivable.

Reason:

As cash receipt is for $180, trial balance always agrees if you have posted equal debit and equal credit to any account but here although posting is wrong but at the same time debit to cash is $180 and credit to account receivable is $18 so it will lead to difference in total of Trial balance by difference of $162 i.e. $180-$18.

All other errors which are given although have been wrongly recorded and posted but in all cases wherever or howsoever these are posted but in each error posting equal debit and equal credit is posted so these will not lead to difference in trial balance.


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