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Question

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

A
Errors of principle.
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B
Compensating errors.
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C
Wrong balancing of an account.
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D
Both (A) & (B).
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Solution

The correct option is C Wrong balancing of an account.
Error of principle- it can not be revealed by the trial balance.
Compensating error- It can not be revealed by the trial balance as one error will be compensated by the other error.
Wrong balancing of an account- It will affect the trial balance agreement as this will be one sided error.

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