Error Correction in Bookkeeping Quiz

Which of the following is an example of a transposition error in bookkeeping?

• Recording £123 as £132

• Recording £500 as £50

• Recording £75 as £57

• Recording £200 as £20

What is the correct journal entry to rectify an error where a cash purchase of £150 was recorded as £105?

• Debit Purchases £45, Credit Cash £45

• Debit Cash £45, Credit Purchases £45

• Debit Purchases £150, Credit Cash £150

• Debit Cash £150, Credit Purchases £150

If the trial balance totals do not agree, which of the following could be a possible reason?

• A transaction was recorded twice

• A transaction was omitted

• A transaction was recorded in the wrong account

• one sided entry

Which of the following errors will not affect the trial balance?

• One sided entry

• Different debits and credit amount

• An error of commission

• error of omission

A payment of £200 for office supplies was incorrectly debited to the equipment account. What is the correcting journal entry?

• Debit Office Supplies £200, Credit Equipment £200

• Debit Equipment £200, Credit Office Supplies £200

• Debit Office Supplies £200, Credit Cash £200

• Debit Cash £200, Credit Equipment £200

Which of the following is a common bookkeeping mistake?

• Recording transactions in the wrong period

• Recording the transaction in the wrong account

• Misplacing decimal points

• All of the above

What is the effect on the trial balance if a £500 sale is recorded as £50?

• The trial balance will be overstated by £450

• The trial balance will be understated by £450

• The trial balance will be overstated by £50

• The trial balance will be understated by £50

Which of the following is the correct way to correct an error of principle?

• Reverse the incorrect entry and record the correct entry

• Ignore the error as it does not affect the trial balance

• Adjust the trial balance to reflect the error

• Record a compensating error