Archive about 'Correction of Errors'
Revision Notes On Correction Of Errors
Salient points:
Know how to explain the different type of errors which do not affect the agreement of trial balance:
Error of Omission – when a transaction is completely omitted from the books
Error of Commission-when an entry has been posted to the […]
Answer To Accounting Test Question COE No. 1 On Correction Of Errors
Answer to Accounting Test Question COE No.1:
(a) Mr. A’s Journal Entries
Item No
Date
Particulars
Dr ($)
Cr ($)
1
Dec 31
Discount Received A/c
365
Discount Allowed A/c
365
Suspense A/c
730
Being correction of Discount Allowed $365 wrongly credited to Discount Received Account
2
Dec 31
Mr TEY Account
210
Mr XY Account
210
Being correction of payments $2,100 by Mr XY wrongly credited to Mr TEY account
3
Dec 31
Drawings Account
3,600
Wages Accoount
2,640
Purchases Account
960
Being correction of […]
Accounting Test Question COE No. 1 On Correction Of Errors
Accounting Test Question COE No 1 On Correction Of Errors
Question:
Mr. A extracted a Trial Balance at 31 st December 2005 and found that it did not balance. He posted the difference to a Suspense Account. Later he found the following errors which accounted for the difference:
The total […]
Errors Affecting The Trial Balance And Suspense A/c (Part 2 of 2)
Part 1 illustrates the errors that do not affect the Trial Balance.
In this article, we shall discuss the different type of errors which affect the agreement of the Trial Balance. To make the Trial Balance agree, a suspense account is used as a balancing figure.
Earlier in my article on Suspense account, I have also explained […]
Errors Not Affecting The Trial Balance (Part 1 of 2)
This article discussed the different type of errors which do not affect the agreement of the Trial Balance.
When these type of errors are discovered, their correction is journalized in the General Journal to be posted to their respective ledgers.
Errors Of Omission
Occurs when a transaction is being COMPLETELY OMITTED from the books
Example:
A cash receipt of $500.00 […]
Understanding Suspense Account: Uses and Salient Points
USES OF SUSPENSE ACCOUNT
Suspense account can be used for the following valid reasons :
1. It’s an account for bookkeeper to use which can be posted any difference on the trial balance pending the discovery of errors; the errors when found are corrected by debiting and crediting the suspense account. Ultimately, the suspense account is nil balance after […]
July 10, 2008
June 19, 2008
June 18, 2008
June 17, 2008
June 16, 2008
June 12, 2008


