The purchase on credit of a delivery truck for $9,600 was posted to Delivery Trucks as a $9,600 debit and to Rent Expense as a $9,600 debit. What effect would this error have on the trial balance?
A) The total of the Debit column of the trial balance will exceed the total of the Credit column by $9,600.
B) The total of the Credit column of the trial balance will exceed the total of the Debit column by $9,600.
C) The total of the Debit column of the trial balance will exceed the total of the Credit column by $19,200.
D) The total of the Credit column of the trial balance will exceed the total of the Debit column by $19,200.
E) The total of the Debit column of the trial balance will equal the total of the Credit column.

Question

Quizplus · Accepted Answer

The error resulted in an additional $9,600 being debited to Rent Expense, which should not have occurred. This means there is an extra $9,600 in the Debit column that should have been offset by a credit to a liability account (e.g., Accounts Payable) for the purchase on credit. Therefore, the Debit side is overstated by $9,600 for the truck and an additional $9,600 for the incorrect Rent Expense entry, totaling an overstatement of $19,200.

The Purchase on Credit of a Delivery Truck for $9,600