Question

An error in recording the transaction amount in both debit and credit columns of the journal will not impact the trial balance.

Options

• True

• False

Answer 1

True

Explanation:

• If the same incorrect amount is recorded on both the debit and credit sides of the journal, the trial balance will still agree because the error affects both sides equally.
• This type of mistake is known as a compensating error; it does not disturb the equality of debits and credits, so it won’t impact the trial balance.