The trial balance will not balance when a company debits two statement of financial position accounts and no income statement accounts.

Question

Quizplus · Accepted Answer

Since statement of financial position accounts are balance sheet accounts, both sides of the trial balance will increase and hence the trial balance will not balance. However, if an income statement account is also debited, the other side of the trial balance will decrease and the trial balance will balance.

The Trial Balance Will Not Balance When a Company Debits