ACCOUNTING MCQ!!!!!!!!!! ARGHH!!!

[Sijan92]

Hey guys could you please help me out. its 03 oct/nov.

9 When will the totals of a trial balance not agree?
A A debit note is entered in the Purchases Journal.
B A purchase invoice for $500 is omitted from the Purchases Journal.
C A purchase invoice for $750 is entered in the Purchases Journal at $570.
D A purchase invoice for $310 is entered in the Purchases Journal but not included in the
monthly total.

could anyone please explain the answer.

 

[hamza95]

first three options affect both sides of the trial balance...........which you may try doing....
the last option would understate the debit side as monthly total purchases are not entered and you have already credited
the account of creditors.. which will overstate the credit side ....

 

[Sijan92]

But what about option A? A debit note is issued to suppliers when faulty goods are returned to them. Itsa returns outwards and therefore is a credit entry. If it is included in the purchases journal then it means that debit side should be overstated and trial balance wont agree. Please clarify

 

[Momina-Z]

In the paper I would have done option D cz yeah in the dual aspect thingy one thing has been entered n the other has been omitted but I get what Sijan is sayin n there IS a reason be confused abt it.

 

[kabir]

A is wrong becuz purchase journal is overadded instead of purchase returns acc,trial balance will still match.but ans D is correct becuz at first debit purchase credit supplier...so here da error is only in da puchase journal but crediors were correctly enterd in da accounts so trial balance will not match....

 

[hamza95]

yeah..........kabir is correct............!!!

 

[Sijan92]

What the? Why will the trial balance match if purchase journal is over added instead of purchase returns? Purchase returns is a credit entry and purchases is a debit entry. Hence, if purchases is recorded instead of purchases returns it will cause the debit side to exceed the credit side!

 

[kabir]

dude im sorry if u cant understand...i knw its a little complicated but i explaind it before....but 4get abt it becuz accounting paper 1 is history!!!

 

[Momina-Z]

Wt if he gets an A* n he has a lil brother whos also takin acc n asks this question.wt will he say?its embaressin if dsnt no that after gettin an A*
pple will call his victory luck.so if u cnt xplain js say so instead of not xplainin cz the paper is over

 

[Sijan92]

Lol..