Reference no: EM132782415

Question 1: If furniture is overvalued by P1,000 in the trial balance,________

a. the total debit balance is greater than the total credit balance in the trial balance

b. the total debit balance is smaller than the total credit balance in the trial balance

c. the total debit balance is the same as the total credit balance in the trial balance

d. the value of assets on the credit side of the trial balance should be reduced

Question 2: If the debit side of the trial balance is undervalued by P2,000 with the correct debit balance, which of the following are not the possible reasons?

1. The cash payment for the electricity bill of P2,000 is recorded as the payment for rates in the ledgers.

2. The transaction regarding the settlement of debt by Mr. Lee by cash of P2.000 in the ledger accounts is completely omitted.

3. The receipt of income in cash of P1,000 is recorded in the cash book as payment by cash of P1,000, while the entry in the income account is made correctly.

a. (1) and (2) only

b. (1) and (3) only

c. (2) and (3) only

d. (1), (2) and (3)