The Trial Balance & Correction of Errors (Cambridge (CIE) IGCSE Accounting)

A suspense account was opened after the totals of a trial balance did not agree. It was found that sales returns, $730, had been credited to the purchases returns account.

Which journal entry is required to correct this error?

After a trial balance had been completed, the following errors were found.

     The total of the purchases account was overstated by $50

     The total of the rental income account was overstated by $50

Which of the following statements is correct about the trial balance that had been completed?

After completing the trial balance, it was found that an amount of $2700 for equipment repairs had been entered in the equipment account.

Which type of error is this?

Which of the following errors would cause the gross profit to be overstated?

Equipment, $3 000, was incorrectly posted to the credit side of the purchases account.

The draft version of the profit for the year was $82 000.

What was the revised profit for the year after the correction of the error? You may ignore depreciation.

Karen introduced additional capital of $7500 to her business. She mistakenly debited this to the capital account and credited it to the bank account.

When this error is corrected, what effect will that have on the statement of financial position?

While preparing his draft financial statements, Nasir made two errors. These caused his gross profit to be understated by $850 and his profit for the year to be overstated by $100.

Which two errors did Nasir make?

The trial balance shown below failed to balance.

Which items have been entered onto the wrong side of the trial balance?

Kamda bought a new motor vehicle for her business. She paid $28 000, which included $120 for fuel and $260 for road tax. In her accounting records she debited the purchases account and credited the bank account with $28 000.

Which of the following journal entries would correct her error?

After his trial balance did not agree, Ameen created a suspense account and placed the difference from the trial balance in it.

Ameen has discovered the following errors.

1.  A cheque used to pay for business expenses, for $350, had been debited to the bank account.

2. A cheque received from Rabul, for $80, had not been entered in Rabul's account.

What was the balance on the suspense account before the errors were corrected.

Sal has opened a suspense account because of a discrepancy in his trial balance. He found that a rent received amount of $370 had been correctly entered in the rental income account, but had been debited to the bank account as $730.

Which entries will correct this error?

Gwydion prepared a trial balance. He entered both the balance on the discount received account, $850, and the drawings, $625, in the wrong column.

Which total of the trial balance was higher, and what was the amount of the difference between the debit total and the credit total?

Jethro discovered two errors in his ledger accounts. He made entries in a suspense account to correct these errors, and then closed the suspense account once the corrections were completed.

The errors were:

1. $650 sales returns had been omitted from the sales returns account

2. The sales journal had been overcast by $400

Which entry was made in the suspense account to balance the trial balance?

Marsha, a trader, prepared a draft income statement for her business, which showed a profit for the year of $42 500.

When she checked her books, however, she noticed the following information.

1. Drawings she had made of $1 100 had been debited to the wages account.

2. She had decreased the provision for doubtful debts by $50 at the year-end. However, the total provision of $420 had been debited to the income statement.

3. The total of the discount received column in the cash book, $130, for one month had not been credited to the discount received account.

What was Marsha's correct profit for the year?