Question

If a purchase return of Rs. 1,000 has been wrongly posted to the debit of the sales returns account, but has been correctly entered in the suppliers account, the total of the _________________.

• A. Trial balance would show the debit side to be Rs. 1,000 more than the credit.
• B. Trial balance would show the credit side to be Rs. 1,000 more than the debit.
• C. Debit side of the trial balance will be Rs. 2,000 more than the credit side.
• D. Credit side of the trial balance will be Rs. 2,000 more than the debit side.

Answer 1

The correct option is C Debit side of the trial balance will be Rs. 2,000 more than the credit side.

This error will give the double affect as instead of credit of $Rs.1000$ for purchase return, a debit of $Rs.1000$ is posted to sales return a/c.

Due to this, debit of trial balance will be $Rs.2000$ more than the credit side.