A trial balance taken at year-end showed total credits exceed total debits by $4,950. This discrepancy could have been caused by:
A) An error in the general journal where a $4,950 increase in Accounts Receivable was recorded as an increase in Cash.
B) A net income of $4,950.
C) The balance of $49,500 in Accounts Payable being entered in the trial balance as $4,950.
D) The balance of $5,500 in the Office Equipment account being entered on the trial balance as a debit of $550.
E) An error in the general journal where a $4,950 increase in Accounts Payable was recorded as a decrease in Accounts Payable.

Question

Quizplus · Accepted Answer

An error in the trial balance where a debit of $5,500 is recorded as $550 would cause the total debits to be understated by $4,950, leading to credits exceeding debits by that amount.

A Trial Balance Taken at Year-End Showed Total Credits Exceed