Gce Model Questions Vol1 2024 Financial Accounting Question 44

Practice objective / multiple choice question 44 from the 2024 Gce Model Questions Vol1 Financial Accounting examination.

Gce Model Questions Vol1 2024 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 44 GCE_MODEL_QUESTIONS_VOL1 • 2024 • FINANCIAL_ACCOUNTING • objective

A trial balance for a small business shows total debits of \(£92{,}000\) and total credits of \(£90{,}200\). The accountant is told that the imbalance is caused by a single entry that has been posted on the wrong side of the ledger (debit instead of credit, or vice‑versa). Determine the amount of that entry and state how it should be corrected.

Answer Options

Correct Answer A. The mis‑posted amount is £900. It should be removed from the debit side and recorded on the credit side (i.e., reverse the £900 debit and post a £900 credit).
B. The mis‑posted amount is £1,200. It should be added to the debit side and subtracted from the credit side to balance the trial balance.
C. The mis‑posted amount is £900. It should be removed from the credit side and recorded on the debit side (i.e., reverse the £900 credit and post a £900 debit).
D. The mis‑posted amount is £1,800. It should be removed from the debit side and recorded on the credit side (i.e., reverse the £1,800 debit and post a £1,800 credit).
Correct Answer
A
Correct Option:
The mis‑posted amount is £900. It should be removed from the debit side and recorded on the credit side (i.e., reverse the £900 debit and post a £900 credit).

About This Question

This is Gce Model Questions Vol1 2024 Financial Accounting Question 44. It is one of the objective questions from the 2024 Gce Model Questions Vol1 Financial Accounting examination.

Difficulty level: Medium .

View More Gce Model Questions Vol1 2024 Financial Accounting Questions More Gce Model Questions Vol1 Practice Questions Back to Questions

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