Which of the following errors will cause the trial balance to be out of balance?

• A. Recording a \$500 debit as \$5,000
• B. Posting a debit entry to the wrong account with the correct amount
• C. Omitting a transaction entirely from the books
• D. Recording both the debit and credit sides of a transaction twice

Answer: (A)

Verified step by step guidance

1. Understand the purpose of a trial balance: A trial balance is a summary of all ledger accounts and their balances at a specific point in time. It ensures that the total debits equal the total credits, verifying the arithmetic accuracy of the accounting records.
2. Analyze the first scenario: Recording a \$500 debit as \$5,000. This error will cause the trial balance to be out of balance because the debit side will be overstated by \$4,500, while the credit side remains unchanged.
3. Analyze the second scenario: Posting a debit entry to the wrong account with the correct amount. This error will not cause the trial balance to be out of balance because the debit and credit amounts are still equal; the error is in the account classification, not the totals.
4. Analyze the third scenario: Omitting a transaction entirely from the books. This error will not cause the trial balance to be out of balance because both the debit and credit sides are missing, maintaining the equality of debits and credits.
5. Analyze the fourth scenario: Recording both the debit and credit sides of a transaction twice. This error will not cause the trial balance to be out of balance because the duplication affects both sides equally, keeping the debits and credits in balance.