Which of the following situations will cause total debit balance to be smaller than the total credit balance? a. The amount extracted from a creditor's account is posted to the wrong side of the trial balance. b. The amount extracted from the account of a debtor, Mr. Lee, is posted as P1,000 instead of P1,100 in the trial balance. c. Sales of goods are recorded as purchases of goods in the ledger accounts. d. The purchase of fixtures is recorded in furniture account.
Which of the following situations will cause total debit balance to be smaller than the total credit balance? a. The amount extracted from a creditor's account is posted to the wrong side of the trial balance. b. The amount extracted from the account of a debtor, Mr. Lee, is posted as P1,000 instead of P1,100 in the trial balance. c. Sales of goods are recorded as purchases of goods in the ledger accounts. d. The purchase of fixtures is recorded in furniture account.
Financial Accounting Intro Concepts Meth/Uses
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ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter8: Revenue Recognition, Receivables, And Advances From Customers
Section: Chapter Questions
Problem 15E
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1. Which of the following situations will cause total debit balance to be smaller than the total credit balance?
a. The amount extracted from a creditor's account is posted to the wrong side of the trial balance .
b. The amount extracted from the account of a debtor, Mr. Lee, is posted as P1,000 instead of P1,100 in the trial balance.
c. Sales of goods are recorded as purchases of goods in the ledger accounts.
d. The purchase of fixtures is recorded in furniture account.
2. If furniture is overvalued by P1,000 in the trial balance, ----------.
a. the total debit balance is greater than the total credit balance in the trial balance
b. the total debit balance is smaller than the total credit balance in the trial balance
c. the total debit balance is the same as the total credit balance in the trial balance
d. the value of assets on the credit side of the trial balance should be reduced
3. If the debit side of the trial balance is undervalued by P2,000 with the correct debit balance, which of the following are not the possible reasons? 1. The cash payment for the electricity bill of P2,000 is recorded as the payment for rates in the ledgers. 2. The transaction regarding the settlement of debt by Mr. Lee by cash of P2,000 in the ledger accounts is completely omitted. 3. The receipt of income in cash of P1,000 is recorded in the cash book as a payment by cash of P1,000, while the entry in the income account is made correctly.
a. (1) and (2) only
b. (1) and (3) only
c. (2) and (3) only
d. (1), (2) and (3)
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