Which of the following errors would cause the trial balance to be out of balance?
Correct Answer
A payment of $748 to a creditor was posted as a credit to Accounts payable of $748 and a credit of $748 to Cash.
Cash received from a customer on account was posted as a credit of $820 to Cash and as a debit of $820 to Accounts receivable.
You Answered
An entry for the purchase of inventory costing $8,000 was posted as a debit to Inventory $800 and a credit to Accounts Payable $800.
A payment of $590 for supplies was posted as a debit of $950 to Supplies and a credit of $950 to Cash.
An entry for the purchase of inventory costing $1,600 was posted twice as a debit to Inventory $1,600 and twice as a credit to Accounts Payable $1,600
An error that would cause the trial balance to be out of balance is: A payment of $590 for supplies was posted as a debit of $950 to Supplies and a credit of $950 to Cash.
This error results in an imbalance because the total debits ($950) are not equal to the total credits ($950), causing the trial balance not to balance. The correct posting should have been a debit of $590 to Supplies and a credit of $590 to Cash.
