Accounting – 3.1 The trial balance | e-Consult
3.1 The trial balance (1 questions)
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The errors that will NOT affect the equality of debits and credits in the trial balance are: (a) Commission expense, (b) Compensating error, and (c) Complete reversal.
Explanation:
- Commission Expense: This is a normal balancing figure. It results in a credit balance in the income statement and a debit balance in the profit and loss account. These balances are automatically reflected in the trial balance without causing an imbalance.
- Compensating Error: A compensating error involves a debit and credit error of the same amount. This means the total debits and total credits remain balanced, so the trial balance will still be in equilibrium.
- Complete Reversal: A complete reversal involves two identical entries – one to reverse the original entry and another to record the correct transaction. These two entries cancel each other out, leaving no net effect on the trial balance.
Omission (d), Original Entry (e), and Incorrect Accounting Principle (f) will all lead to an imbalance in the trial balance because they create either a debit or credit difference that is not offset by another entry.