Control accounts, Errors, and Suspense accounts

Question 1

Receivables Control Account

Answer 1

A nominal ledger account in which records are kept of transactions involving all receivables in total.

Question 2

Payables Control Account

Answer 2

A nominal ledger in which records are kept of transactions involving all payables in total.

Question 3

Unpresented cheques

Answer 3

Cheques paid OUT by the business and not yet presented to the bank

Question 4

Uncleared lodgements

Answer 4

Cheques paid IN to the business, which have not yet been entered into the bank

Question 5

Transposition error

Answer 5

When two digits are recorded the wrong way round

Question 6

Error of omission

Answer 6

Failing to record one or both sides of a transaction

Question 7

Error of principle

Answer 7

Making a correctly valued double entry into the conceptually incorrect accounts

Question 8

Error of commission

Answer 8

Entering an incorrect value into the correct account

Question 9

Compensating error

Answer 9

Errors which are equal and opposite to one another

Question 10

Suspense account

Answer 10

An account showing a balance equal to the difference in a TB