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Ledger Posting Errors Analysis

The document outlines errors in posting transactions from the journal to the ledger, affecting the trial balance. Errors include incorrect postings for advertising expenses, client receipts, supplies purchases, and creditor payments, resulting in imbalances in the trial balance. Specific differentials and which column totals are larger are provided for each error.

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Samuel Belisario
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49 views2 pages

Ledger Posting Errors Analysis

The document outlines errors in posting transactions from the journal to the ledger, affecting the trial balance. Errors include incorrect postings for advertising expenses, client receipts, supplies purchases, and creditor payments, resulting in imbalances in the trial balance. Specific differentials and which column totals are larger are provided for each error.

Uploaded by

Samuel Belisario
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

Problem 7.

The following errors occurred in posting transactions from the journal to the ledger

1. A payment of P1,700 for advertising was posted as a P1,700 debit to advertising expense and a P7,100 credit to cas

2. The receipt of P3,000 from a client on account was posted as P3,000 debit to cash and a P3,000 credit to sales

3. The purchase of supplies on account for P1,400 was posted twice as a debit to supplies and once as a credit to acco

4. The payments of P2,200 to a creditor on account was posted as a credit to accounts payable for P2,200 and a credit

For each of these errors, determine the following:

a. Is the trial balance out of balance?


b. If out of balance, what is the difference between the column totals?
c. Which column total is larger?

Answers:
1. The trial balance is out of balance, with a differential of 5400 Php, that makes the credit cash collumn larger than th

2. It’s balance but it has a different account title it's supposed to be credited to accounts recievable since I received 3,0
I received cash from his previous transaction which is purchased of sales on account. The collumn total is also balanc

3. The trial balance is out of balance, with a differential of 1,400 Php, that makes the supply debit collumn larger beca

4. The trial balance is out of balance due to the fact that both entries are credited meaning there will be 0 debit and 4,4
that makes credit column larger than debit column.
pense and a P7,100 credit to cash.

nd a P3,000 credit to sales

ies and once as a credit to accounts payable.

payable for P2,200 and a credit to cash for P2,200

redit cash collumn larger than the balancing ammount which is 1,700 Php.

s recievable since I received 3,000 Php from client on his account meaning
The collumn total is also balanced just wrong account title.

upply debit collumn larger because it was posted twice.

ing there will be 0 debit and 4,400 total credit from cash and accounts payable

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