Grade 9 : Correction of Errors

01) Saddique’s trial balance failed to balance. The debit column totalled $12 250 and the credit column totalled $12 200.The following errors were discovered. No entry had been made for cash sales, $150. The total of the discount received account, $50, had been omitted from the trial balance. What were the totals of the trial balance after the errors had been corrected?

A $12 250

B $12 300

C $12 350

D $12 400

• A

• B

• C

• D

2) $68 paid by credit transfer for insurance was entered in the accounting records as $86.

Which double entry will correct this error?

account debited               $ account credited         $

A Bank                               18 insurance                  18

B bank                                68 Insurance                  68

C insurance                         18 bank                           18

D insurance                      68 bank                           68

• A

• B

• C

• D

03) Maria’s draft income statement for the year ended 31 March 2022 showed a profit for the year of $38 750.On 31 December 2021, Maria received a 5% bank loan of $4800 which was incorrectly treated as a revenue receipt. In error, a whole year’s interest on the bank loan was included in the draft income statement for

the year ended 31 March 2022.What was the correct profit for the year ended 31 March 2022?

A $33 770

B $34 130

C $43 370

D $43 730

• A

• B

• C

• D

04) After the financial statements for the year ended 30 April 2022 had been prepared, a trader discovered that the closing inventory had been over-valued. What will be the effect of this error?

profit for the year ended 30 April 2022 capital on 30 April 2022 profit for the year ending 30 April 2023

A overstated overstated understated

B overstated understated no effect

C understated no effect no effect

D understated understated overstated

• A

• B

• C

• D

05) The total of the debit column of a trial balance was more than the total of the credit column. One account balance had been entered in the wrong column. Which one was it?

A cash

B discount received

C drawings

D irrecoverable debts

• A

• B

• C

• D

6) Davi prepared the following journal entry to correct an error.

debit $ credit $

Samir 40

Samuel 40

Which error was being corrected?

A Cash paid to Samir had been credited to Samuel.

B Cash received from Samuel had been debited to Samir.

C Goods bought from Samir had been credited to Samuel.

D Goods sold to Samir had been debited to Samuel.

• A

• B

• C

• D

07) A suspense account was opened with a credit balance of $840. Which error caused this?

A A cheque for $420 received from a customer was debited to his account.

B Discounts allowed, $420, was debited twice in the discounts allowed account.

C Goods costing $420, taken by the owner of the business for own use, were credited to his drawings account.

D Rent received, $420, was credited twice in the rent receivable account.

• A

• B

• C

• D

08 ) A trader calculated her profit for the year at $14 800. The following errors were then discovered.

No entry had been made for $200 wages accrued.

The insurance expense included a prepayment of $90.

What is the correct profit for the year?

A $14 510

B $14 690

C $14 910

D $15 090

• A

• B

• C

• D

09) A sales invoice for $800 was incorrectly recorded in the sales journal as $1800.

How did this error affect the trial balance?

A The trial balance balanced but both totals were overstated by $1000.

B The trial balance balanced but both totals were understated by $1000.

C The trial balance did not balance because the credits were overstated by $1000.

D The trial balance did not balance because the debits were understated by $1000.

• A

• B

• C

• D

10) After preparing draft financial statements at the end of her first year of trading, Lucy discovered two errors.

1 Damaged inventory had been valued at cost price, $340. It was expected to sell for $180.

2 100 items which had been expected to sell for $12 each had been valued at their cost price of $7 each. Carriage inwards of $1 for each item had not been included in the cost.

What was the effect of these errors on the gross profit?

A overstated $60

B overstated $240

C understated $60

D understated $240

• A

• B

• C

• D