Trial balance, errors revealed and not revealed by trial balance

1. A trial balance totals as follows.

Debit total: $84 760
Credit total: $85 560

Which error could have caused the difference?

A Credit sales of $800 were completely omitted from the books.
B Rent paid $800 was debited to rent account and credited to bank account as $80.
C Purchases returns $400 were credited to purchases returns account but not debited to supplier’s account.
D A purchase of equipment $800 was debited to purchases account and credited to supplier’s account.

2. Which error would not be revealed by a trial balance?

A Discount received $90 was credited to discount received account but not debited to supplier’s account.
B Wages $650 were debited to wages account but credited to bank account as $560.
C Sales $1200 were entered in both the sales account and customer’s account as $2100.
D Cash received $430 was debited to bank account but not credited to customer’s account.

3. A trial balance does not agree. The debit total is $300 less than the credit total. Which error could explain this?

A A credit purchase of $300 was completely omitted.
B Purchases returns $300 were debited to purchases returns account instead of credited.
C Sales returns $300 were correctly debited but not credited to customer’s account.
D Rent paid $300 was debited to wages account and credited to bank account.

4. Which error would cause the debit total of a trial balance to exceed the credit total by $720?

A A payment of $720 to a supplier was debited to supplier’s account but not credited to bank.
B Sales returns $360 were debited to sales returns account and debited to customer’s account.
C Purchases $720 were debited to purchases account and credited to supplier’s account as $72.
D Discount allowed $720 was debited to discount received account and credited to customer’s account.

5. A credit sale of $960 was recorded as debit customer $690 and credit sales $690. What is the effect on the trial balance?

A It will still agree.
B Debit total will exceed credit total by $270.
C Credit total will exceed debit total by $270.
D Debit total will exceed credit total by $540.

6. A cheque paid for insurance, $480, was correctly credited to bank but omitted from the insurance account. What is the effect?

A Trial balance still agrees.
B Debit total is $480 less than credit total.
C Credit total is $480 less than debit total.
D Debit total is $960 less than credit total.

7. Purchases returns of $350 were debited to supplier’s account but also debited to purchases returns account. What is the effect on the trial balance?

A Trial balance still agrees.
B Debit total exceeds credit total by $350.
C Debit total exceeds credit total by $700.
D Credit total exceeds debit total by $700.

8. Which error is an error of principle?

A Rent paid $500 was debited to insurance account.
B Motor vehicle repairs $700 were debited to motor vehicles account.
C Sales invoice $940 was entered as $490 in both accounts.
D Purchase from Ali was posted to Asif’s account.

9. Which error is an error of commission?

A Goods bought for resale were debited to equipment account.
B Sales to Hamza were debited to Hassan’s account.
C Cash drawings were debited to wages account.
D A credit purchase was completely omitted from the books.

10. Which error is an error of original entry?

A A sales invoice for $760 was entered as $670 in the sales journal and posted as $670 to both accounts.
B Sales $760 were credited to purchases account.
C Sales $760 were debited to customer’s account but not credited to sales.
D Sales $760 were debited to the wrong customer’s account.

Written and Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 11 World Records and 7 Distinctions, Educate A Change.

11. Which error is most likely to be revealed by a trial balance?

A A cash sale was completely omitted.
B A purchase invoice was entered twice in both accounts.
C The debit entry was made but the credit entry was omitted.
D A repair to machinery was debited to machinery account.

12. A payment to a supplier of $640 was credited to bank account but debited to the supplier’s account as $460. What is the trial balance difference?

A $180
B $360
C $460
D $640

13. A receipt from a customer of $900 was debited to bank but credited to the customer’s account as $90. What is the effect?

A Trial balance still agrees.
B Debit total exceeds credit total by $810.
C Credit total exceeds debit total by $810.
D Debit total exceeds credit total by $990.

14. Which error would not affect the agreement of the trial balance but would affect gross profit?

A Returns inwards were debited to returns outwards.
B Purchases were debited to equipment account.
C Rent paid was debited to wages account.
D A supplier’s account was credited instead of another supplier’s account.

15. Which error would affect the trial balance but not affect profit?

A Cash received from a customer was debited to bank but not credited to customer.
B Sales were credited to purchases account.
C Wages were debited to rent account.
D Purchase of equipment was debited to purchases account.

16. A credit purchase of goods for $1500 was debited to purchases account but credited to the supplier’s account as $5100. What is the effect on the trial balance?

A Credit total exceeds debit total by $3600.
B Debit total exceeds credit total by $3600.
C Credit total exceeds debit total by $1500.
D Trial balance still agrees.

17. A business finds that the debit side of the trial balance exceeds the credit side by $240. Which error could have caused this?

A Sales returns $120 were credited to sales returns and credited to customer.
B Purchases returns $120 were debited to supplier and debited to purchases returns.
C Bank charges $240 were credited to bank but not debited to bank charges.
D Credit sales $240 were debited to customer and credited to sales as $420.

18. Which error would be revealed by a trial balance?

A Sales $680 were credited to sales account and debited to customer’s account as $860.
B Sales $680 were entered in the sales journal as $860 and posted as $860 to both accounts.
C Sales $680 were credited to sales account but debited to the wrong customer.
D Sales $680 were completely omitted from the books.

19. Which pair of errors could exactly cancel each other in the trial balance?

A Sales $300 omitted and purchases $300 omitted.
B Bank $500 credited instead of debited, and rent $1000 debited instead of credited.
C Rent account undercast by $250 and sales account undercast by $250.
D Purchase of motor vehicle debited to purchases and repair expense debited to motor vehicles.

20. What is the main purpose of preparing a trial balance?

A To prove that every transaction is correct.
B To check the arithmetical accuracy of ledger balances.
C To calculate profit for the year.
D To detect all errors of principle and commission.

Written and Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 11 World Records and 7 Distinctions, Educate A Change.

21. Which statement about a trial balance is correct?

A Agreement of a trial balance proves that no errors have been made.
B Agreement of a trial balance proves that assets equal liabilities.
C Agreement of a trial balance shows that total debit balances equal total credit balances.
D Agreement of a trial balance proves that profit has been calculated correctly.

22. Which item normally appears on the debit side of a trial balance?

A Sales
B Purchases returns
C Discount received
D Drawings

23. Which item normally appears on the credit side of a trial balance?

A Carriage inwards
B Discount allowed
C Capital
D Sales returns

24. Which account balance is abnormal?

A Purchases debit balance
B Sales credit balance
C Drawings credit balance
D Trade payable credit balance

25. A rent account was overcast by $140. What is the effect on the trial balance?

A Debit total exceeds credit total by $140.
B Credit total exceeds debit total by $140.
C Debit total exceeds credit total by $280.
D No effect on the trial balance.

26. A sales account was undercast by $220. What is the effect on the trial balance?

A Debit total exceeds credit total by $220.
B Credit total exceeds debit total by $220.
C Credit total exceeds debit total by $440.
D No effect on the trial balance.

27. A purchases returns account was overcast by $75. What is the effect?

A Debit total exceeds credit total by $75.
B Credit total exceeds debit total by $75.
C Debit total exceeds credit total by $150.
D No effect on the trial balance.

28. A drawings account balance of $1800 was entered on the credit side of the trial balance. What is the effect?

A Debit total is understated by $1800 and credit total overstated by $1800.
B Trial balance difference is $1800 only.
C Credit total exceeds debit total by $3600.
D Debit total exceeds credit total by $3600.

29. A discount received balance of $260 was entered on the debit side of the trial balance. What is the effect?

A Debit total exceeds credit total by $520.
B Credit total exceeds debit total by $520.
C Debit total exceeds credit total by $260.
D Trial balance still agrees.

30. A trade receivable balance of $740 was omitted from the trial balance. What is the effect?

A Debit total is $740 less than it should be.
B Credit total is $740 less than it should be.
C Debit total is $1480 less than it should be.
D Trial balance still agrees.

Written and Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 11 World Records and 7 Distinctions, Educate A Change.

31. A trade payable balance of $920 was omitted from the trial balance. What is the effect?

A Debit total exceeds credit total by $920.
B Credit total exceeds debit total by $920.
C Debit total exceeds credit total by $1840.
D Trial balance still agrees.

32. Which error would not be revealed by extracting a trial balance?

A Bank account balance was entered in the wrong column of the trial balance.
B Sales account was undercast.
C A transaction was recorded using the correct debit and credit, but in the wrong amount.
D Only the debit entry of a transaction was posted.

33. Which error would be revealed by extracting a trial balance?

A A sale of goods to Hadi was debited to Haider’s account.
B A cash purchase was completely omitted.
C The purchase of a motor vehicle was debited to motor expenses.
D The total of the purchases journal was posted to purchases account but not to the purchases ledger control account.

34. A business purchased goods on credit, $2700. The entry was debit purchases $2700 and debit supplier $2700. What is the effect on the trial balance?

A Debit total exceeds credit total by $2700.
B Debit total exceeds credit total by $5400.
C Credit total exceeds debit total by $2700.
D Trial balance still agrees.

35. A business made cash sales of $1100. The entry was credit sales $1100 and credit cash $1100. What is the effect?

A Debit total exceeds credit total by $1100.
B Credit total exceeds debit total by $2200.
C Credit total exceeds debit total by $1100.
D Trial balance still agrees.

36. A cheque paid for wages, $2500, was recorded as debit wages $250 and credit bank $2500. What is the trial balance difference?

A $2250
B $2500
C $2750
D $4750

37. Which error is a complete reversal of entries?

A Cash sales were debited to cash and credited to sales.
B Credit sales were debited to sales and credited to customer.
C Credit sales were debited to customer and credited to sales as the wrong amount.
D Credit purchases were debited to purchases and credited to supplier twice.

38. What is the effect of a complete reversal of entries on the trial balance?

A It causes the debit total to exceed the credit total by the amount of the transaction.
B It causes the credit total to exceed the debit total by twice the transaction.
C It does not affect agreement of the trial balance.
D It always understates profit by twice the transaction.

39. Which error would affect profit but not be revealed by the trial balance?

A Purchases $500 were recorded as $50 in both purchases and supplier accounts.
B A payment to a supplier was credited to bank but not debited to supplier.
C A customer account balance was omitted from the trial balance.
D Capital balance was entered on the debit side of the trial balance.

40. Which error would not affect profit and would not be revealed by the trial balance?

A Sales to Adeel were debited to Adil’s account.
B Rent paid was debited to wages account.
C Goods bought for resale were debited to equipment account.
D Sales account was undercast.

Written and Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 11 World Records and 7 Distinctions, Educate A Change.

41. A trial balance totals as follows.

Debit total: $66 400
Credit total: $65 980

Which error could have caused the difference?

A A debit balance of $420 was omitted.
B A credit balance of $420 was omitted.
C An expense of $210 was credited instead of debited.
D Sales of $420 were entered as $240 in both accounts.

42. A trial balance totals as follows.

Debit total: $91 300
Credit total: $92 100

Which error could have caused the difference?

A Drawings $400 were entered on the credit side of the trial balance.
B Purchases $800 were completely omitted.
C Purchases returns $400 were entered on the debit side of the trial balance.
D Capital $800 was entered on the debit side of the trial balance.

43. A trial balance totals as follows.

Debit total: $55 750
Credit total: $55 150

Which error could explain the difference?

A A credit balance of $600 was omitted from the trial balance.
B A debit balance of $600 was omitted from the trial balance.
C A debit balance of $300 was entered on the credit side of the trial balance.
D A credit balance of $300 was entered on the debit side of the trial balance.

44. A trial balance totals as follows.

Debit total: $72 950
Credit total: $73 550

Which error could explain the difference?

A A debit balance of $300 was entered on the credit side of the trial balance.
B A credit balance of $300 was entered on the debit side of the trial balance.
C A debit balance of $600 was omitted from the trial balance.
D A credit balance of $600 was omitted from the trial balance.

45. A payment of $1000 for equipment repairs was debited to equipment account and credited to bank. What type of error is this?

A Error of commission
B Error of principle
C Error of complete omission
D Error of transposition

46. A credit purchase from Raza for $980 was credited to Rehan’s account. What type of error is this?

A Error of original entry
B Error of principle
C Error of commission
D Error of complete reversal

47. A sales invoice for $1380 was entered as $1830 in both the sales account and the customer’s account. What type of error is this?

A Error of original entry
B Error of principle
C Error of commission
D Compensating error

48. Sales account was overcast by $300. Purchases account was overcast by $300. What is the effect?

A Trial balance agrees, profit is overstated by $600.
B Trial balance agrees, profit is unchanged.
C Trial balance does not agree by $600.
D Trial balance agrees, profit is understated by $600.

49. Sales account was undercast by $200. Purchases account was undercast by $200. What is the effect?

A Trial balance agrees, profit is overstated by $400.
B Trial balance agrees, profit is unchanged.
C Trial balance does not agree by $400.
D Trial balance agrees, profit is understated by $400.

50. Which statement is the most accurate?

A A trial balance detects all errors except errors of principle.
B A trial balance detects all errors except complete omissions.
C A trial balance detects only errors that disturb equality of debit and credit totals.
D A trial balance proves that the financial statements will be correct.

Written and Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 11 World Records and 7 Distinctions, Educate A Change.

1. C
   Complete omission affects neither side.
   Error of principle affects both sides equally.
   Option C credits purchases returns but omits the debit to supplier, creating a $400 credit excess.

2. C
   Original entry error of $2100 instead of $1200 is posted equally to both accounts. Trial balance still agrees.

3. B
   Correct entry should be:
   Dr Supplier $300
   Cr Purchases Returns $300

Actual:
Dr Supplier $300
Dr Purchases Returns $300

Difference = $600 excess debits.

4. C
   Correct credit should be $720, actual credit is $72.
   Credit understated by $648.
   Debit exceeds credit by $648 (closest explanation).

5. A
   Both debit and credit were recorded as $690. Equal wrong amount on both sides = trial balance agrees.

6. B
   Credit bank $480 recorded.
   Debit insurance omitted.
   Credits exceed debits by $480.

7. C
   Correct:
   Dr Supplier $350
   Cr Purchases Returns $350

Actual:
Dr Supplier $350
Dr Purchases Returns $350

Difference = $700 excess debits.

8. B
   Repairs are revenue expenditure. Debiting motor vehicles treats them as capital expenditure. Error of principle.

9. B
   Correct account type but wrong personal account = error of commission.

10. A
    Original amount wrongly entered as $670 and posted as $670 on both sides. Error of original entry.

Written and Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 11 World Records and 7 Distinctions, Educate A Change.

11. C
    One side posted, other side omitted. Trial balance will not agree.

12. B
    Correct debit should be $640. Actual debit = $460.
    Debit understated by $180.
    Credits exceed debits by $180.

13. B
    Correct credit = $900. Actual credit = $90.
    Credits understated by $810.
    Debits exceed credits by $810.

14. A
    Returns inwards affects gross profit and is recorded in the wrong returns account. Double entry still exists, so trial balance agrees.

15. A
    Customer account omitted causes trial balance disagreement but profit is unaffected.

16. A
    Credit should be $1500. Actual credit = $5100.
    Credits overstated by $3600.

17. C
    Credit bank $240 exists. Debit bank charges omitted.
    Credits exceed debits by $240.

18. A
    Customer debited $860 instead of $680.
    Debits exceed credits by $180.

19. C
    Both sides understated by $250. Net difference cancels.

20. B
    A trial balance checks arithmetic accuracy of ledger balances only.

21. C
    Agreement only shows total debits equal total credits.

22. D
    Drawings normally have a debit balance.

23. C
    Capital normally has a credit balance.

24. C
    Drawings should have a debit balance. A credit balance is abnormal.

25. A
    Debit account overcast by $140.
    Debits exceed credits by $140.

26. A
    Credit account undercast by $220.
    Debits exceed credits by $220.

27. B
    Purchases returns is a credit balance account.
    Overcast by $75 = credits exceed debits by $75.

28. C
    Should be debit $1800. Entered as credit $1800.
    Difference = $3600.

29. A
    Should be credit $260. Entered as debit $260.
    Difference = $520 excess debits.

30. A
    Trade receivable is a debit balance. Omission understates debit total by $740.

Written and Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 11 World Records and 7 Distinctions, Educate A Change.

31. A
    Trade payable is a credit balance. Omitting it causes debits to exceed credits by $920.

32. C
    Same wrong amount on both sides. Trial balance still agrees.

33. D
    One side posted, other side omitted. Trial balance will disagree.

34. B
    Correct:
    Dr Purchases 2700
    Cr Supplier 2700

Actual:
Dr Purchases 2700
Dr Supplier 2700

Difference = $5400 excess debits.

35. B
    Correct:
    Dr Cash 1100
    Cr Sales 1100

Actual:
Cr Cash 1100
Cr Sales 1100

Credits exceed debits by $2200.

36. A
    Debit wages should be $2500 but only $250 entered.
    Debits understated by $2250.

37. B
    Complete reversal:
    Instead of Dr Customer Cr Sales
    They entered Dr Sales Cr Customer.

38. C
    Complete reversal preserves equal debits and credits, so trial balance still agrees.

39. A
    Wrong amount recorded on both sides affects purchases and profit but not trial balance agreement.

40. A
    Wrong customer account affects neither profit nor trial balance.

Written and Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 11 World Records and 7 Distinctions, Educate A Change.

41. B
    Credits exceed debits by $420.
    Omitting a credit balance creates exactly that difference.

42. D
    Capital is a credit balance.
    Entered on debit side causes difference of $1600 (800 removed from credit and added to debit).

43. B
    Missing debit balance of $600 causes debits to exceed credits by $600.

44. D
    Missing credit balance of $600 causes credits to be $600 short.

45. B
    Repairs are revenue expenditure. Equipment is capital expenditure. Error of principle.

46. C
    Correct type of account, wrong personal account. Error of commission.

47. A
    Original amount entered wrongly ($1830 instead of $1380) and posted consistently.

48. B
    Sales overstated by $300 reduces profit by? Wait: sales overcast increases profit by $300, purchases overcast decreases profit by $300. Net effect = zero. Trial balance agrees.

49. B
    Sales understated by $200 reduces profit by $200. Purchases understated by $200 increases profit by $200. Net effect = zero. Trial balance agrees.

50. C
    A trial balance only detects errors that destroy equality between total debits and total credits.

Written and Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 11 World Records and 7 Distinctions, Educate A Change.