Correction of Errors (Edexcel IGCSE Accounting: Introduction to Bookkeeping & Accounting): Exam Questions

On 31 August 2023 Jones, a sole trader, identified the following errors and omissions.

1. A withdrawal of cash for personal use, $650, had not been recorded.

2. A payment for motor expenses, $234, had been posted to the motor vehicles account.

3. A cheque paid for general expenses, $65, had been entered in the cash book as $56

Prepare journal entries to record the correction of each of these errors and omissions.
Narratives are not required.

Identify, indicating with a tick (✓), the effect, if any, on the profit for the year ended 31 August 2023 following the correction of each error and omission.

State which account is opened when a trial balance does not balance.

State the type of error in each scenario.

Explain the effect on owner’s equity of:

(i) not recording cash drawings of $175

(2)

(ii) recording wages as $80 instead of $180

(2)

Returns inwards, $150, was posted to the credit of returns outwards.

Identify how this transaction would be corrected in the books of account.

Identify which error would be disclosed by the preparation of a trial balance.

State one difference between an error of commission and an error of principle.

State one other type of error that does not affect the balancing of the trial balance.

Identify the type of error when a sales invoice for $500 is entered in the sales day book as $450.

A trader provided the following balances at 31 March 2022.

After preparing the trial balance, three errors were discovered.

• The sales account had been undercast by $200

• A payment of $218 to Johann, a credit supplier, had been entered in the bank account correctly but had been posted to Johann’s account as $128

• A cheque received of $130 from C Green, a credit customer, had been credited to the bank account and debited to the account of V Green.

Prepare journal entries to correct the errors. Narratives are not required.

Journal

A payment for rent, $20, had been posted to the credit of the rent received account.

Which entry would correct the error?

Identify the type of error in each scenario.

At the end of his financial year, 31 March 2021, Jacques prepared a trial balance and opened a suspense account with a debit balance of $210

Jacques has found the following errors.

1. Motor insurance, $400, had been posted to the debit side of the motor vehicles account.

2. A cheque received from a credit customer, $650, had been entered correctly in the cash book but had been entered as $560 on the credit side of the customer’s account.

3. A direct debit, $120, for general expenses had not been entered.

4. Returns inwards, $150, had been posted to the credit side of the returns outwards account.

State the type of error made in error 1.

Prepare journal entries to correct each of the errors.

Narratives are not required.

Which one of the following errors would require a correcting entry in a suspense account?

Identify the type of error in each case.

Ben records motor vehicle expenses in the motor vehicle account in error.

What type of error is this?

State two purposes of a suspense account.

Complete the following table for each scenario.