Answer to Question #52801 in Accounting for Abdulla Sabit

Question

The cash and the accounts receivable columns in the cash receipts journal were mistakenly over added $4,000 at the end of the month.
a)Will the customer's ledger agree with the accounts receivable control account?
b)Assuming no other errors, will the trial balance totals be equal?

Answer 1

If the cash and the accounts receivable columns in the cash receipts journal were mistakenly over added $4,000 at the end of the month:
a) The customer's ledger may not agree with the accounts receivable control account, because the sum on the accounts receivable control account will be higher than it should be.
b) Assuming no other errors, the trial balance totals will be equal, because the sum of $4,000 was mistakenly added both to debit and credit.