Question

Which of the following errors will be revealed by the trial balance:

• A. Errors of complete omission
• B. Errors of Principle
• C. Compensating Errors
• D. Posting a correct amount to the correct account but on incorrect side

Answer 1

The correct option is D Posting a correct amount to the correct account but on incorrect side

When a correct amount is posted in the correct account but on the wrong side, the trial balance will not tally and this will be easily revealed by it.

For example, when cash paid to creditor is wrongly entered in cash account on the debit side. In this case cash account will have more debit balance, on the other hand creditors account is correct and has correct balance. On transferring these balances to the trial balance, the debit side total will be more than the credit side total because of this error. This difference in the agreement of the trial balance is easily visible.