Correction Of Errors (Not affecting Trial Balance)

An insurance payment, RM 600, was correctly debited to the bank account but was posted to the salaries account by mistake.

• Error of principle

• Error of commission

Repairs to office equipment, RM 1,500 had been posted to the office equipment account.

• Error of principle

• Error of commission

Drawings of goods by Nick for personal use, RM 200 had not been recorded in the books.

• Error Of Commission

• Error Of Omission

Sales returns and discounts received were both overstated by RM 250.

• Reversal Error

• Compensating Error

A cheque of RM 2,500 received for commission income was debited to the commission income and credited to cash at bank account.

• Reversal Error

• Compensating Error

A cheque payment of RM 4,000 for rent was recorded as RM 40,000 in the books.

• Reversal Error

• Error of Original Entry

A cheque collection, RM 300 from Jia Yu Construction was recorded in Jia En Contractors account.

Please state the type of error and correct the entries.

• Error of commission

  Dr Jia Yu Construction RM 300

  Cr Jia En Contractors RM 300

• Error of principle

  Dr Jia Yu Construction RM 300

  Cr Jia En Contractors RM 300

• Error of commission

  Dr Jia En Contractors RM 300

  Cr Jia Yu Construction RM 300

• Error of principle

  Dr Jia En Contractors RM 300

  Cr Jia Yu Construction RM 300

Goods had been sold to Mark on credit for RM 3,100. No record of the sale had been made in the accounts.

Please state the type or error and show the correct entries.

• Error of original entry

  Dr Account Receivable - Mark RM 3,100

  Cr Sales RM 3,100

• Error of omission

  Dr Account Receivable - Mark RM 3,100

  Cr Sales RM 3,100

• Error of original entry

  Dr Sales RM 3,100

  Cr Account Receivable - Mark RM 3,100

• Error of omission

  Dr Sales RM 3,100

  Cr Account Receivable - Mark RM 3,100

The purchases account was overstated by RM 1,200 while the inventory account was understated by RM 1,200.

Please state the type of error and show the correct entries.

• Compensationg Error

  Dr Inventory RM 1,200

  Cr Purchases RM 1,200

• Reversal Error

  Dr Inventory RM 1,200

  Cr Purchases RM 1,200

• Compensationg Error

  Dr Purchases RM 1,200

  Cr Inventory RM 1,200

• Reversal Error

  Dr Purchases RM 1,200

  Cr Inventory RM 1,200

A payment for RM 1,400 utilities was debited to cash in hand and credited to utilities account.

• Reversal Error

  Dr Utilities RM 1,400

  Cr Cash RM 1,400

• Reversal Error

  Dr Utilities RM 2,800

  Cr Cash RM 2,800

• Reversal Error

  Dr Cash RM 1,400

  Cr Utilities RM 1,400

• Reversal Error

  Dr Cash RM 2,800

  Cr Utilities RM 2,800