The total of the purchases day book was $12 450. It was posted to the purchases account as $12 540. What is the effect?
Question 1 Report
The total of the purchases day book was $12 450. It was posted to the purchases account as $12 540. What is the effect?
Answer Details
The correct answer is: The trial balance will have a debit side $90 too high.
The purchases day book total was $12 450 but it was posted to the purchases account as $12 540. Purchases has a debit balance, so the debit side of the trial balance is overstated by $90 ($12 540 - $12 450 = $90).
The individual supplier accounts in the purchases ledger were posted correctly from the day book entries (not from the total), so the credit side is correct. Only the control/general ledger posting of the total was wrong, making the debit side $90 too high.
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