Worksheetschapter 6: errors and corrections to accounting records
Total questions: 8
Worksheet time: 10mins
Tim has realised that drawings of £100 were entered into the accounting record as a debit to expense and a credit to the cash at bank account. what is the journal entry to correct this error?
debit cash £100
credit drawing £100
debit drawings £100
credit cash £100
debit expense £100
credit drawing £100
debit drawings £100
credit expense £100
Adam incorrectly recorded as a purchase of types for his personal use as purchase of the business. what type of error is that?
an error of commission
a transposition error
an error of principle
a compensating error
A bank statement shows a balance of £1,200 in credit. An examination of the accounting records shows a £500 cheque paid in per the cash at bank account but not yet on the bank statement and £1,250 cheque paid out but not yet on the bank statement. In addition the cash at bank account shows the owner's correct calculation of saving interest of £50 which should've been received, but which is not on the statement. what is the balance per cash at bank account?
£1,900 overdrawn
£500 overdrawn
£1,900 in hand
£500 in hand
The exception report from accounting system shows a suspense account of £23,500 debit in respect of a single unmatched bank payment. It was identified that the cash payment relates to a new delivery van which was purchased during the year.
debit purchase,
credit suspense account
debit non-current assets,
credit suspense account
debit non-current assets,
credit cash at bank ccount
debit suspense account,
credit purchase
In the trade payable account, an invoice of £807 from supplier has been recorded as a credit note.
after correcting this error, the trade payable account balance will be:
reduced by £807
reduced by £1,614
increased by £807
increased by £1,614
an error of commission is one in which
a transaction has not been recorded
one side of a transaction has been recorded in the wrong account, and that account is of a different class to the correct account
one side of a transaction has been recorded in the wrong account, and that account is of a same class to the correct account
a transaction has been recorded using the wrong amount
in performing a bank reconciliation exercise, which two of the following require an entry in the cash at bank account
cheque paid in, subsequently dishonored on the bank transaction report
error by bank
bank charges
lodgment credit after date
outstanding cheques not yet presented
when an error in a debit entry is cancelled out by an error in a credit entry, this. is called:
a commission error
a compensating error
an omission error
an error of principle
