Question

Which of the following would cause a trial balance to be out of balance?

A) A transaction was recorded twice
B) Only the debit of a transaction was recorded
C) A transaction was not recorded
D) A transaction was posted to the wrong account

Answer 1

A trial balance can be out of balance if a transaction is recorded twice, only the debit of a transaction is recorded, a transaction is not recorded, or a transaction is posted to the wrong account.

Step-by-step explanation:

A) A transaction was recorded twice

B) Only the debit of a transaction was recorded

C) A transaction was not recorded

D) A transaction was posted to the wrong account

A trial balance is a list of all the accounts and their respective balances. It is used to check for errors in recording and posting transactions. If the trial balance is out of balance, it means that the debits and credits in the accounts do not equal each other. This can happen due to various reasons:

1. A transaction was recorded twice: If a transaction is recorded twice, then the debits and credits will be doubled, causing the trial balance to be out of balance.
2. Only the debit of a transaction was recorded: If only the debit of a transaction is recorded and the credit is missed, then the debits and credits will not equal each other, resulting in an out of balance trial balance.
3. A transaction was not recorded: If a transaction is not recorded at all, it will not be included in the trial balance, causing the debits and credits to not match.
4. A transaction was posted to the wrong account: If a transaction is posted to the wrong account, the debits and credits will be recorded in the wrong accounts, leading to an imbalance in the trial balance.