Errors & Suspense account

When the trial balance totals do not agree, the difference is entered in:

• the balance account

• the suspense account

• the errors account

• the profit and loss

A rental payment of $200 was not recorded in the books. Which type of error is this?

• Error of omission

• Error of commission

• Error of original entry

• Compensating error

A credit purchase of goods $1200 from Calvin trading was recorded in Clara trading account. Name the error.

• Error of commission

• Error of omission

• Error of principle

• Compensating error

A cheque payment of $500 for rent was not recorded. Name the error.

• Error of commission

• Error of omission

• Error of principle

• Compensating error

Both salaries expense and commission income were overstated by $900. State the correction of error.

• Dr Capital Cr salaries exp

• Dr salaries expense cr commission income

• Dr commission income Cr salaries expense

What is the impact on profit for the year if income overstated?

• profit will be overstated
• profit will be understated
• no effect

Cheque of $300 was issued to settle Mr Chan's account was recorded in Mr Chen's account.

• Error of omission

• Error of commission

• Error of original entry

• Compensating error

Purchase of a motor van costing $1000 was recorded in motor expenses account.

• Error of omission

• Error of commission

• Error of original entry

• Error of principle

Purchase of a motor van costing $1000 was recorded in motor expenses account.

• Error of omission

• Error of commission

• Error of original entry

• Error of principle

When there is error with credit entry not equal to credit entry,

• trial balance will not agree

• trial balance will agree

• supense account will be appeared

• there is no suspense account