Which of the following errors in the journal entry will not be detected by trial balance?
A:Credits are understand and debits are recorded correctly
B:Debits are overstated and the credits are correctly recorded
C:Debits are understated and the credits are overstated by different amounts
D:Both debit and credit parts are overstated by the same amount
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To find out which of the errors in the journal entry will not be detected by the trial balance, we need to understand what the trial balance is and how it works.
The trial balance is a financial statement that lists all the general ledger accounts and their respective debit or credit balances. The purpose of the trial balance is to ensure that the total debits equal the total credits, thus verifying the accuracy of the accounting records.
Let's analyze each scenario to determine which error will not be detected by the trial balance:
A: In this scenario, credits are understood and debits are recorded correctly. If this is the case, the trial balance will detect any errors because it compares the total debits to the total credits. Therefore, this error will be detected by the trial balance.
B: In this case, debits are overstated, and the credits are correctly recorded. While the trial balance will detect that the total debits do not equal the total credits, it will not uncover the exact error. The trial balance can identify that there is an imbalance, but it cannot pinpoint the specific error. Therefore, this error will not be detected by the trial balance.
C: This scenario involves understated debits and overstated credits by different amounts. Similar to scenario B, the trial balance will recognize an imbalance between the debits and credits, but it will not uncover the precise error. Hence, this error will also not be detected by the trial balance.
D: In this situation, both the debit and credit parts are overstated by the same amount. Like the previous scenarios, the trial balance will identify the imbalance but will not reveal the specific error. Consequently, this error will not be detected by the trial balance.
In summary, the error that will not be detected by the trial balance is option B - when debits are overstated, and the credits are recorded correctly.