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If a company has a trial balance that shows total debits of $50,000 and total cr

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Question: If a company has a trial balance that shows total debits of $50,000 and total credits of $48,000, what is the discrepancy?

Options:

  1. $1,000 debit error
  2. $2,000 credit error
  3. $2,000 debit error
  4. $1,000 credit error

Correct Answer: $2,000 credit error

Solution: 

The discrepancy is $2,000, indicating that there is a credit error since total debits exceed total credits.

If a company has a trial balance that shows total debits of $50,000 and total cr

Practice Questions

Q1
If a company has a trial balance that shows total debits of $50,000 and total credits of $48,000, what is the discrepancy?
  1. $1,000 debit error
  2. $2,000 credit error
  3. $2,000 debit error
  4. $1,000 credit error

Questions & Step-by-Step Solutions

If a company has a trial balance that shows total debits of $50,000 and total credits of $48,000, what is the discrepancy?
  • Step 1: Identify the total debits from the trial balance, which is $50,000.
  • Step 2: Identify the total credits from the trial balance, which is $48,000.
  • Step 3: Calculate the discrepancy by subtracting total credits from total debits: $50,000 - $48,000.
  • Step 4: The result of the calculation is $2,000, which is the discrepancy.
  • Step 5: Since total debits are greater than total credits, this indicates a credit error.
  • Trial Balance – A trial balance is a statement that lists the total debits and credits of a company's accounts to ensure they are equal.
  • Discrepancy Identification – Identifying discrepancies in a trial balance helps in pinpointing errors in accounting entries.
  • Debits and Credits – Understanding the relationship between debits and credits is crucial for accurate financial reporting.
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