Which of the following would be highlighted by extracting a trial balance?

A transposition error was made when debiting the depreciation expense

(2) The cash book balance does not agree with the bank statement balance

(3) Sundry income has been debited to the statement of proht or loss and correctly posted to the cash

account

• 2 and 3 only

1 only

1 and 3 only

1.2 and 3

1 and 3 only

Explanation:

Errors that can be detected by a trial balance include;

Errors of transposition Errors of omission (if the omission is one-sided) Errors of commission (for e. g. if one-sided, or two debit entries are made)

Other errors will not be detected by extracting a trial balance, but may be spotted by other controls (such as bank or control account reconciliations).

1 is a transposition error whereas 3 is an error of commission. Therefore these will be highlighted in Trial Balance whereas 2 will be extracted by a Bank Reconciliation.