Accounting for IGCSE & O level - Accounting Procedures (Section 23 - No. 35)
A customer paid $500 in cash, and the bookkeeper recorded it in the purchases account instead of the cash account. What is the effect on the trial balance?
The trial balance will balance.
The debit side will be $500 higher.
The credit side will be $500 higher.
The trial balance will be out of balance.
Explanation
The cash will be correctly recorded within the double entry.
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