Errors that do / do not Affect the T.B

If a trial balance totals do not agree, the difference must be entered in

• The Profit and Loss Account

• The Suspense Account

• A Nominal Account

• The Capital Account.

Which of the following do not affect trial balance agreement? (i) Sales £105 to A Henry entered in P Henry’s account

(ii) Cheque payment of £134 for Motor expenses entered only in Cash Book

(iii) Purchases £440 from C Browne entered in both accounts as £404

(iv) Wages account added up incorrectly, being totaled £10 too much.

• (i) and (iv)

• (i) and (iii)

• (ii) and (iii)

• (iii) and (iv).

If £500 was shown added to Purchases instead of being added to a fixed asset

• Net profit only would be understated

• Net profit only would be overstated

• It would not affect net profit

• Both gross and net profits would be understated.

An amount of $100 is debited to an account in error. It should have been credited to the account.

What is the effect of this error on the trial balance totals?

• There will be $100 more on the credit side than on the debit side.

• There will be $100 more on the debit side than on the credit side.

• There will be $200 less on the credit side than on the debit side.

• There will be $200 less on the debit side than on the credit side.

X received a cheque from Z, a customer. X recorded it as being received from S, another

customer.

What type of error is this?

• commission

• compensating

• omission

• principle

A purchase on credit of $500 from Mitchell was credited in error to Mitchison’s ledger account.

Which journal entries correct this error?

• Mitchison $500 debit Mitchell $500 credit

• Mitchell $500 debit Mitchison $500 credit

• Suspense $500 debit Mitchell $500 credit

• Mitchison $500 debit Suspense $500 credit

A difference on a trial balance was entered in a suspense account. It was found that a cheque for

$120 had been entered on the wrong side of a debtor’s account.

Which entries should be made in the journal to correct the error?

• debtor $120 debit suspense $120 credit

• debtor $240 debit suspense $240 credit

• suspense $120 debit debtor $120 credit

• suspense $240 debit debtor $240 credit

Which error affects the balancing of a trial balance?

• an addition error in the Sales account

• crediting a purchase to B. Shore's account instead of A. Shaw's account

• failing to enter a sales invoice in the books

• posting the purchase of a machine to the debit side of the Purchases account

A trial balance agrees, total debits and total credits being $50 000.

It is now discovered that an insurance payment of $200 had been wrongly entered in the General

Office Expenses account instead of the Insurance account.

What will the trial balance totals be after this error has been corrected?

• $49 800

• $50 000

• $50 200

• $50 400

A difference on a trial balance is entered in a Suspense account. It is found that rent paid of $250

has been correctly entered in the Rent account but credited to the Bank account as $520.

Which entries will correct this error?

• Bank account $270 Suspense account $270

• Suspense account $270 Bank account $270

• Bank account $520 Suspense account $520

• Suspense account $520 Bank account $520