Two transactions are recorded incorrectly in a worksheet. The first error is a transaction of $1000 which is recorded twice on the assets side of the worksheet. The second error is a transaction of $500 recorded only on the assets side of the worksheet. What will be the difference between the assets side of the worksheet and the liabilities + owners' equity side of the worksheet?
A) $500
B) $1500
C) $2000
D) $2500

Question

Quizplus · Accepted Answer

The first error adds an extra $1000 to the assets side, and the second error adds another $500. Together, these errors result in a total of $1500 being added incorrectly to the assets side. Therefore, the difference between the assets side and the liabilities + owners' equity side is $1500.

Two Transactions Are Recorded Incorrectly in a Worksheet