FAR110 ACCOUNTING ERRORS

The following are errors of principle EXCEPT:

• Purchase of equipment being debited to purchase account.

• A sale of a motor van had been credited to the Motor Expenses account.

• Goods taken for personal use had been debited to the General Expenses account.

• Purchase of goods from Ellie for RM520 had been entered in the books as RM502.

Hani’s account (a debtor) is being understated by RM300 and Ravi’s account (a debtor) is overstated by the same amount. This statement describes the ___________ .

• Error of Commission

• Error of Principle

• Compensating error

• Error of original entry

Which of the following errors is error affecting the trial balance?

• A credit sale amounting to RM650 was wrongly recorded in the sales and debtor account as RM605.

• Withdrawal of goods by the owner, amounting to RM300 was not recorded in the books.

• A purchase of motor vehicles of RM1,200 on credit is wrongly recorded to repairs of motor vehicles account with the same amount.

• A cash sale of RM400 is debited to cash account only

  A credit sale of RM5,000 to Bienda Enterprise was credited to the sales account but wrongly debited to Bynda Enterprise (a debtor). The type of error is

• Error of original entry

• Error of Principle

• Error of commission

• Compensating error

The account clerk had mistakenly over-recorded the salary expense and dividend received account by RM200. This is an/a

•        Compensating error

• Error of principle

• Error of reversal entries

• Error of commission

Aiman borrowed RM30,000 from ABC Bank Nasional for business purpose. In the ledger accounts, he debited the “ABC Bank Nasional Account” and credited the “Bank Account”. This is an/a

• Error of omission

• Error of principle

• Error of reversal entries

• Error of commission

Which of the following action is considered as error affecting the trial balance:

• Ali the bookkeeper of Moon Trading, recorded depreciation expense of Motor Vehicle in the Motor Vehicle account instead of Depreciation for Motor Vehicle account.

• Jazzy Enterprise recorded credit sales of Aimi Trading in Aimee Trading account.

• Aqis Enterprise sold goods worth RM1,000 but the clerk unintentionally issued a sales invoice of RM10,000.

• HIG Trading bought goods on credit from Jazzy Enterprise, but the business only recorded a single record for the transaction in the Purchase account.

Which of the following errors will affect the Trial Balance?

I.          Posting to the incorrect side of an account

                        II.         Error of reversal entries

                        III.        Error of transposition

                        IV.        Error in addition

• I, II and III only

• I, III and IV only

• II, III and IV only

• All of the above

A trial balance will not balance if

• The purchase of a motor vehicle on credit is debited to the motor vehicle account and credited to the cash account.

• Purchase invoice of RM808 for credit purchase is recorded in the purchase journal as RM880.

• RM500 payment by cash to an account payable is debited to account payable for RM50 and credited to cash account for RM50

• Goods withdrawn by the owner of RM1,750 are debited to drawings account for RM1,750 and credited to purchases account for RM1,700.