Accounting for IGCSE & O level - Accounting Procedures (Section 22 - No. 24)
If a business fails to record a cash payment for rent, how will this affect the trial balance?
The debit side will be higher than the credit side.
The credit side will be higher than the debit side.
The trial balance will still balance, but the profit will be incorrect.
The trial balance will remain balanced, with no effect.
Explanation
The trial balance will still balance, but the profit will be incorrect as both the rent expense and cash were not recorded.
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