Correcting Errors 1

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?

• debit Mitchison $500 credit Mitchell $500

• debit Mitchell $500 credit Mitchison $500

• debit Suspense $500 credit Mitchell $500

• debit Mitchison $500 credit Suspense $500

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 Trade Receivables’ account.

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

• debit Trade Receivables $120 credit suspense $120

• debit Trade Receivables $120 suspense $120

• debit suspense $120 credit Trade Receivables $120

• debit suspense $240 credit Trade Receivables $240

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