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

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2
Q

explain the purpose of the suspense account

A

a temporary account where all the unexplained differences from the trial balance are posted

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