Question

Sales to Meena Rs.143 was credited as 413. This ____________ .

• A. is an error of omission
• B. will not affect the trial balance
• C. Will not affect the profit
• D. None of these

Answer 1

The correct option is D None of these

Wrong amount posted is an error of posting. This will affect the trial balance because wrong amount has been credited to the ledger account, while the debit aspect is correct. The credit balance of the trial balance will exceed the debit balance leading to unbalanced trial balance.

This will affect the profit because balance of sales account is shown in the trading account for calculating the gross profit, any change and the balance of sales account will affect the profit. This gross profiit is transferred to the profit and loss account to determine the net profit of the business, which will change because of change in gross profit because of change in balance of sales account.