CameraIcon
CameraIcon
SearchIcon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

Rs.1500 received from sub-tenant for rent, entered correctly in the cash book and posted to the debit of the rent account. In the trial balance ____________.

A
the debit total will be greater by Rs. 3,000 than the credit total
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
B
the debit total will be greater by Rs. 1,500 than the credit total
No worries! We‘ve got your back. Try BYJU‘S free classes today!
C
subject to other entries being correct, the total will agree
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
none of the above
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution

The correct option is B the debit total will be greater by Rs. 3,000 than the credit total
Correct accounting entry will be as under:
Cash A/c Dr. 15001500
To Rent A/c 1500

Instead of crediting the Rent account by Rs.1500, it is wrongly debited by Rs.1500. Hence there will be a double affect.

In such case, the total of debit will be greater by Rs.3000 than the credit total.

flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Liquidity Ratios
ACCOUNTANCY
Watch in App
Join BYJU'S Learning Program
CrossIcon