IGCSE Errors

A trial balance completed on 31 March 2013 agreed. Later it was found that two errors had been made in the accounts.

1. The cost of repairs to a machine had been incorrectly debited to the machinery account.

2. Cash taken by the owner for his own use had not been recorded in the accounts.

What type of errors are these examples of?

• 1. compensating error

  2. error of original entry

• 1. error of commission

  2. compensating error

• 1. error of omission

  2. error of original entry

• 1. error of principle

  2. error of omission

Which is a compensating error?

• credit sales debited to the sales account and credited to the customer’s account

• purchases of fixtures on credit debited to the repairs to fixtures account

• sales account and sales returns account undercast by the same amount

• Yeung’s account credited with a cheque received from Yang, another customer

A business has a suspense account. It is found that the amount in the suspense account is in respect of a cash sale to Tahir, which was omitted from the sales account.

Which entries will correct the error?

• account debited sales

  account credited suspense

• account debited suspense

  account credited sales

• account debited suspense

  account credited Tahir

• account debited Tahir

  account credited Suspense

Maneck had a draft profit of $10 500. He then discovered that the total of the discount allowed

column of the cash book, $200, had been entered on the credit side of the discount received account.

What was the profit once this error had been corrected?

• $10 100

• $10 300

• $10 700

• $10 900

An amount received from Alice, a credit customer, was credited to the account of Alison in

error.

Which error was made?

• commission

• compensating

• original entry

• principle

John is a retailer of garden furniture. He bought stationery, $25, on credit from A4 Supplies.

He did not record this in his books of account.

Which entries are needed to correct the error?

• debit account A4 Supplies $25

  credit account stationary

• debit account A4 Supplies $25 stationary $25

  credit account suspense $25

• debit account stationary $25

  credit account A4 supplies

• debit account suspense $50

  credit account A4 Supplies $25 stationary $25

Goods, $250, sold on credit to Ahmed were credited to Aktar’s account.

What is the correcting journal entry?

• debit Amed 250 Aktar 250

  credit suspense 500

• debit Ahmed 250 Supense 250

  credit Aktar 500

• debit Aktar 250

  credit Ahmed 250 Suspense 250

• debit suspense 500

  credit Ahmed 250 Aktar 250

What would be recorded in the general journal?

• bad debt written off

• cash sale of goods

• credit sale of goods

• returns outwards