O-LevelAccountingVerification of accounting records7707/12 · Oct/Nov 2021 · Q101 Mark
A sales invoice for $800 was incorrectly recorded in the sales journal as $1800. How did this error affect the trial balance?
AThe trial balance balanced but both totals were overstated by $1000.
BThe trial balance balanced but both totals were understated by $1000.
CThe trial balance did not balance because the credits were overstated by $1000.
DThe trial balance did not balance because the debits were understated by $1000.
✓ Correct answer
A: The trial balance balanced but both totals were overstated by $1000.
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