Accounting for IGCSE & O level - Accounting Procedures (Section 15 - No. 36)
If a business incorrectly debited the purchases account instead of debiting a non-current asset account, how would this affect the trial balance?
The trial balance would be out of balance.
The debit and credit totals would still agree, but the financial statements would be incorrect.
The credit side would be higher.
It wouldn't affect the trial balance or the financial statements.
Explanation
This error would not cause the trial balance to be out of balance. The debit and credit would still equal, as the amount is the same, but the accounts would be incorrect.
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