Identify errors in the accounting records


Response to the following questions:

1. If the two totals of a trial balance are equal, does it mean that there are no errors in the accounting records? Explain.

2. Assume that when a purchase of supplies of $1,030 for cash was recorded, both the debit and the credit were journalized and posted as $1,300.

(a) Would this error cause the trial balance to be out of balance?

(b) Would the trial balance be out of balance if the $1,030 entry had been journalized correctly, but the credit to Cash had been posted as $1,300?

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Accounting Basics: Identify errors in the accounting records
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