Which type of error causes a Trial Balance to be out of balance?

Show Answers

Error made while balancing an accountFailure to enter a transaction in the subsidiary booksIncorrect recording of a transaction in the subsidiary booksPosting to the correct side but in an incorrect accountNone of the above

Explanation

An error in balancing an account (Option A) leads to the Trial Balance not agreeing. Other errors, such as completely omitting a transaction (Option B), making a wrong entry in the subsidiary books (Option C), or posting on the correct side but to the wrong account (Option D), do not disturb the Trial Balance totals because the debit and credit amounts remain equal. Therefore, only mistakes in balancing accounts affect the Trial Balance agreement.