A company purchased a truck for $800 on credit.The journal entry to record this transaction,however,was a debit to 'Truck' for $500 and a credit to 'Account Payable' for $500.What will the effect be on the trial balance?

Question

Quizplus · Accepted Answer

The total amount of debit and credit in the transaction is the same ($500). Therefore, the trial balance will still balance. The fact that the truck was actually purchased for $800 is not relevant to the trial balance since the mistake was only in the journal entry, not the actual transaction.

A Company Purchased a Truck for $800 on Credit