The credit purchase of a new oven for $6,000 was posted to Kitchen Equipment as a $6,000 debit and to Accounts Payable as a $6,000 debit. What effect would this error have on the trial balance?
A. The total of the Debit column of the trial balance will exceed the total of the Credit column by $6,000.
B. The total of the Credit column of the trial balance will exceed the total of the Debit column by $6,000.
C. The total of the Debit column of the trial balance will exceed the total of the Credit column by $12,000.
D. The total of the Credit column of the trial balance will exceed the total of the Debit column by $12,000.
E. The total of the Debit column of the trial balance will equal the total of the Credit column.
Solution
C. The tota of debit side of trail balance exceeds the total of credit side by $ 12000.
Because firstly, the the debit side got increased by $6000 when kitchen equipment was debited.
Secondly, the credit side was decreased by $6000 when accounts payable was debited.
Hence, overall effect was that debit side exceeds credit side by $12000.
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The credit purchase of a new oven for $6-000 was posted to Kitchen Equ.docx
1. The credit purchase of a new oven for $6,000 was posted to Kitchen Equipment as a $6,000 debit
and to Accounts Payable as a $6,000 debit. What effect would this error have on the trial
balance?
A. The total of the Debit column of the trial balance will exceed the total of the Credit column by
$6,000.
B. The total of the Credit column of the trial balance will exceed the total of the Debit column by
$6,000.
C. The total of the Debit column of the trial balance will exceed the total of the Credit column by
$12,000.
D. The total of the Credit column of the trial balance will exceed the total of the Debit column by
$12,000.
E. The total of the Debit column of the trial balance will equal the total of the Credit column.
The credit purchase of a new oven for $6,000 was posted to Kitchen Equipment as a $6,000 debit
and to Accounts Payable as a $6,000 debit. What effect would this error have on the trial
balance?
Solution
C. The tota of debit side of trail balance exceeds the total of credit side by $ 12000.
Because firstly, the the debit side got increased by $6000 when kitchen equipment was debited.
Secondly, the credit side was decreased by $6000 when accounts payable was debited.
Hence, overall effect was that debit side exceeds credit side by $12000.
