Question

Commission received Rs. 2,500 correctly entered in the cash book but posted to the debit side of commission account. In the Trial Balance:

• A. The credit total will be greater by Rs. 5,000 than the debit total
• B. The debit total will be greater by Rs. 2,500 than the credit total
• C. The debit total will be greater by Rs. 5,000 than the credit total
• D. The credit total will be greater by Rs. 2,500 than the debit total

Answer 1

The correct option is B The debit total will be greater by Rs. 2,500 than the credit total

Commission received correctly entered in the cash book but posted to the debit side of the commission account.

In such a case, the trial balance will not agree and debit will show excess by Rs.2500 as the commission is debited wrongly.