Accounting · Trial Balance
An accountant finalizing accounts discovers two errors: a recovery of 50,000 from a written-off bad debt was credited to the personal account of the customer instead of Bad Debts Recovered account, and interest on a fixed deposit of 15,000 was credited to the customer but not debited to the Interest Paid account. If these errors are not rectified, what will be the outcome regarding the trial balance agreement?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The trial balance will still agree because both are compensating errors of equal magnitude.
- 2The trial balance will disagree with the credit side being 15,000 more than the debit side.✓
- 3The trial balance will disagree by 65,000 because both errors involve a failure to record the debit side.
- 4The trial balance will agree because the total amount of 65,000 was captured correctly in the subsidiary books.
Correct answer
The trial balance will disagree with the credit side being 15,000 more than the debit side.
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