- 1 Marks
Question
Which of the following errors does NOT affect the balancing of a trial balance?
A. Error of principle
B. Casting error
C. Transposition error
D. Duplication entries
E. Missing entries in the ledger
Answer
A
Explanation:
Option A is correct because an error of principle occurs when an item is recorded in the wrong type of account (for example, recording revenue in an expense account), but the debit and credit entries are still equal, so the trial balance remains balanced. This error affects the accuracy of the financial statements but does not cause a mismatch in the trial balance totals.
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