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3 December, 07:46

A journal entry for a $210 payment to purchase office supplies was erroneously recorded as a debit to Office Supplies for $550 and a credit to Cash for $210. Which of the following statements correctly states the effect of the error on the trial balance?

A) The sum of the credits will exceed the sum of the debits by $310.

B) The sum of the debits will exceed the sum of the credits by $290.

C) The sum of the debits will exceed the sum of the credits by $310.

D) The sum of the debits will exceed the sum of the credits by $600.

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Answers (1)
  1. 3 December, 10:19
    0
    The sum of the debits will exceed the sum of the credits by $340. (None of the options given).

    Explanation:

    The right posting on the payment of $210 for the purchase office supplies would be;

    Debit office supplies account $210

    Credit Cash account $210

    However since the debit to office supplies was $550 which is 340 (i. e $550 - $210) more than what the amount to have been posted is, it means that the sum of the debits will exceed the sum of the credits by $340.
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