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
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B
the debit total will be greater by Rs. 1,500 than the credit total
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C
subject to other entries being correct, the total will agree
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D
none of the above
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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.