chapter14: errors which affect the trial balance Flashcards
1
Q
list and explain the errors which affect the trial balance
A
single entry error- made when a transaction is only recorded in one account instead of 2
addition error- error arises as a result of incorrect addition in any account. may either be added up to be too high or too low
error in completing double entry- A; recording a transaction on the same side of both accounts B; recording different amounts in both accounts
2
Q
explain the purpose of the suspense account
A
a temporary account where all the unexplained differences from the trial balance are posted