Question

The total of a folio in the Sales Book Rs.1,000 was carried forward as Rs 100. This error

• A. in an error of complete 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

When the total of sales book is carried forward with wrong amount, this is error of posting. This will affect the trial balance because if incorrect amount is transferred to the trial balance the trial balance will not agree. In this case the trial balance will show more debit balance as sales account is undercast, value of debit side of trial balance exceeds the credit side.

This will affect the profit of the year because balance of sales account is included in the trading account to calculate gross profit, any change in the sales account balance will affect the gross profit. This gross profit is transferred to the profit and loss account to find the net profit.