Question

$Rs.3,000$ received from sub-tenant for rent and entered correctly in the cash book is posted to the debit of the rent account. In the trial balance _____________.

• A. the debit total will be greater by $Rs.6,000$ than the credit total
• B. the debit total will be greater by $Rs.3,000$ than the credit total
• C. subject to other entries being correct the total will agree
• D. none of the above

Answer 1

Answer: (A)

the debit total will be greater by $Rs.6,000$ than the credit total

The correct entry for the given transaction:

Cash/ Bank A/c Dr.....$Rs.3,000$

To Rent A/c.....$Rs.3,000$

The same has been posted correctly in Cash book i.e on debit side.

It has been posted incorrectly by debiting in Rent A/c; instead of booking on credit side. Therefore total debit for the entry is Rs.6,000 and credit is Rs.0.

This means no booking done on the credit side at all , leading to a increased debit side of the trail balance by $Rs.6,000$.