Control process

Question 1

What goes into the debit side of trial balance

Answer 1

Asset
Expense
Drawings AED

Question 2

what goes into the credit side of trial balance

Answer 2

Liability
Income
Capital LIC

Question 3

what is the purpose of control account

Answer 3

helps detect any errors in double entry system
sales ledger control account
purchase ledger control account

Question 4

sales ledger control account

Answer 4

summarises all credit sales

Question 5

purchase ledger control account

Answer 5

summaries all credit purchases

Question 6

why will there be a difference in cash book and bank reconciliation statement

Answer 6

timing difference
errors in cash book
transactions unrecorded in cash book

Question 7

error of omission

Answer 7

When a transaction is completely omitted from the accounting records.

Question 8

error of commission

Answer 8

When a transaction is entered in wrong account of the same class, but with the correct amount and on the correct side

Question 9

error of original entry

Answer 9

When the transaction is incorrectly recorded initially in the books of prime entries.

Question 10

error of principle

Answer 10

When a transaction is entered in wrong account of a different class or when incorrect accounting principles are followed.

Question 11

compensating errors

Answer 11

When two or more unrelated errors compensate each other in value and do not affect the total of trial balance.

Question 12

error of complete reversal

Answer 12

When the debits and credits of a transaction are swapped, and amounts are posted on the wrong side.