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Rent received from a tenant was debited to the rent receivable account and credited to the case book. What type of error has been made? A commission B compensating C complete reversal D principle

User Gary Willoughby
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17 votes

Answer: C complete reversal

Explanation:

When there is a complete reversal error which is also known as an " error of complete reversal entry", the debit entry is switched with the credit entry. This is one of the more difficult errors to pick up because the Trial balance remains balanced when this happens as the debits and the credits would still be equal.

When rent is received from a tenant. The correct entries are to debit it to cash which is an asset and so will be debited when it increases.

Then credit it to Rent Receivable because this is a revenue account and these are credited when they increase.

The entries were therefore reversed.

User Travis Christian
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