Question

A few errors committed in Amrut's books of account are given below. State which errors would affect the trial balance.
(1) Sales of Rs$950$ to Ram completely omitted from books of account.
(2) Purchases of Rs$720$ from Shyam entered in the purchases journal as Rs$700$.
(3) Purchases Journal is overcast by Rs$1,000$
(4) Sales returns journal is under cast by Rs$200$.
(5) Amount paid to Agarwal wrongly posted to the debit to Mittal's account.
(6) Bank overdraft shown under debit column in the Trial Balance.
(7) Sales of Rs$500$ to Sadiq entered in sales journal as sales to Mushtaq.
(8) Wages paid for installation of machinery debited to wages account.
Select the correct answer from the options given below.

• A. (1), (3) and (7)
• B. (3), (4) and (6)
• C. (3), (4), (5)and (8)
• D. (3), (4), (6)and (8)

Answer 1

Answer: (B)

(3), (4) and (6)

The errors which will affect the trial balance are 3rd, 4th and 6th errors.

3) Purchase journal is overcast by RS-1,000. This will affect the trial balance as only the debit side of the transaction has an error and the other side is correct thereby affecting the trial balance.

4) Sales return journal is undercast by RS-200. This will affect the trial balance as only the debit side of the transaction has an error and the other side is correct thereby affecting the trial balance.

6) Bank overdraft shown in the debit column in the trial balance. Bank overdraft has a credit balance, and is debited, so both the debit and credit are affected thereby affecting the trial balance.