An organization restores its petty cash balance to £350 at the end of each month.

An organization restores its petty cash balance to £350 at the end of each month.

During October, the total expenditure column in the petty cash book was calculated as being £310, and hence the impress was restored by this amount. The analysis columns, which had been posted to the nominal ledger, totaled only £300.

This error would result in:
A . The trial balance being £10 higher on the debit side
B . The trial balance being £10 higher on the credit side
C . No imbalance in the trial balance
D . The petty cash balance being £10 lower than it should be

View Answer

Answer: B