Trial balance

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 September 2013 Which of the following errors will cause the trial balance to be out of balance?
a.) A debit to an incorrect expense account.
b.) A credit to an expense account instead of an income account.
c.) A credit to an income account instead of an expense account.
d.) A credit to an asset account instead of a debit to a liability account.

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
Follow

22 September 2013 Option d, because of instead of giving credit to the account you are giving debit to the account either for same account or same nature or to another account or another nature credit should be credit as well as debit should be debit other wise trail balance and balance sheet has difference and doesn't tally.

The option D shall called as Disclosed error means due to that effect(error) trail balance shall not be tally. And option a to c called as undisclosed error because of due to such error the Trail balance doesn't effect even though the entries is wrong the TB doesn't effect because of properly debited and/or properly credit but to another account. means same treatment give but in option D reverse treatment give so Trail balance effects.

So in one word answer to your question is Option D.

OM SAI SRI SAI JAI JAI SAI