Answered: Choose A, B, C or D and give an…

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter3: The General Journal And The General Ledger

Section: Chapter Questions

Problem 6E: The bookkeeper for Nevado Company has prepared the following trial balance: The bookkeeper has asked...

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Choose A, B, C or D and give an explanation

The debit side of a company’s trial balance totals $800 more than the credit side.
Which one of the following errors would fully account for the difference?
A $400 paid for plant maintenance has been correctly entered in the cash book and credited to the plant asset account.
B Discount allowed $400 has been debited to discount received account
C A receipt of $800 for commission receivable has been omitted from the records
D The petty cash balance of $800 has been recorded to the trial balance twice.

Definition Definition Financial journal in which only cash-related transactions are recorded. Cash transactions are posted chronologically in the cash book, which is also called a subsidiary book. All the cash receipts are recorded on the debit side and all the cash payments are recorded on the credit side. An important point to remember is that the cash book never shows a credit balance; only a debit balance is shown in the cash book.

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