LESSON 6

The debit side of a trial balance totals $800 more than the credit side. Which one of the following errors would fully account for the difference?

• $400 paid for plant maintenance has been correctly entered in the cash book and credited to the plant asset account

• credit note issued to a customer of $400 has been debited to trade receivables

• a receipt of $800 for commission receivable has been omitted from the records

• the pretty cash balance of $800 has been omitted from the trial balance

The debit side of a trial balance totals $50  more than the credit side. Which one of the following could this be due to?

• A purchase of goods for £50 being omitted from the payables control account

• The sale of goods for £50 being omitted from the receivables control account.

• An invoice of $25  for electricity being credited to the electricity account.

• A receipt for £50 from a customer being omitted from the cash book.

Which one of the following is an error of principle?

• Plant and machinery purchased was credited to a non-current assets account.

• Plant and machinery purchased was debited to the purchases account.

• Plant and machinery purchased was debited to the equipment account.

• Plant and machinery purchased was credited to the equipment account. 

   

   

What is an error of Commission?

• An error where a transaction has not been recorded.

• An error where one side of a transaction has been recorded in the wrong account and that account is of a different class to the correct account

• An error where one side of a transaction has been recorded in the wrong account and that account is of the same class as the correct account.

• An error where the numbers in the posting have been transposed.

Where a transaction is entered into the correct ledger accounts, but the wrong amount is used. What is the error known as?

• An error of omission.

• An error of original entry

• An error of commission.

• An error of principle

Daily Co’s Statement of Profit and Loss and other comprehensive income for the year ended 31 December 20x4 show the profit for the years of 83600. It was later found that 18,000 paid for the purchase of Moto Van had been debited to motor expense account. It is the company policy to depreciate Moto Vans at 25% per year with a full-year charge in the year of acquisition. What is Profit for the year after adjusting for this error?

And all the Nization restarts, it's pretty cash balance to $250 at the end of each month during October. The total expenditure.The column in the pretty cashbook was calculated as being.$210 in the impressed was restored by this amount. The analysis columns posted to the nominal Ledger totaled only 200. Which one of the following.This error causes.

• The trial balance being $10 higher on the debit side.

• The trial balance being $10 higher on the credit side.

• No imbalance in the trial balance.

• The petty cash balance being $10 lower than it should be.

the suspense account shows a dr balance 100. what could this balance be due to?

• entering 50 received from A on the dr side of A

• entering 50 received from A on the cr side of A

• undercasting the sales day book by 100

• undercasting the purchases account by 100

which two of the following errors would require an entry to the suspense account as a part of the process of correcting them

• 4600 paid for motor van repair was correctly treated in the cask bool but was cr to motor van vehicles asset account

• 360 received from B, was cr in error to the account of B

• 9500 paid for rent was dr to the rent account as 5900

• sale returns had been dr in error to the purchases returns account

• 400,000 dr

• 400,000 cr

• 100,000dr

• 100,000 cr