Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 33 - No. 7)
In a trial balance, a balance is extracted from the ledger of a small business. The debit side is 5,000 while the credit side is 3,500. Which of the following errors have been made?
An error of original entry.
An error of complete reversal.
Omission of a transaction.
An error of principle.
Explanation
The debit and credit side did not match. If a transaction was missed, both sides would still be equal, although the total would be different. In the case of an error, the amount being recorded is incorrect.
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