The credit purchase of a new oven for $5,100 was posted to Kitchen Equipment as a $5,100 debit and to Accounts Payable as a $5,100 debit. What effect would this error have on the trial balance

Question

Valerie Daniels

Business

27 June, 08:50

The credit purchase of a new oven for $5,100 was posted to Kitchen Equipment as a $5,100 debit and to Accounts Payable as a $5,100 debit. What effect would this error have on the trial balance

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Answers (1)

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Fatty · Answer 1

The answer is:

The effect on the trial balance is that the total Debit side will be higher the total of the Credit side of the trial balance by $10,200

Explanation:

The effect on the trial balance is that the total Debit side will be higher the total of the Credit side of the trial balance by $10,200.

Two entries of $5,100 each have been entered on the debit column of the trial balance instead of one $5,100 in debit column and the other $5,100 in the credit column. This means the debit side would have $10,200 higher than the credit side since nothing was recorded there.