correction of errors

Question 1

how does errors not revealed by a trial balance happen

Answer 1

1. transaction not recorded at all
2. wrong amount is recorded
3. transaction recorded in the wrong account of a different accounting element
4. transaction recorded in the wrong account of the same accounting element
5. transaction is recorded on the wrong sides of the accounts involved

Question 2

income increase

Answer 2

profit increase

Question 3

expense increase

Answer 3

profit decrease

Question 4

statement of adjusted profit

Answer 4

statement to show adjusted profit for the year ended —-
unadjusted profit for the year (profit before errors discovered)
less: expense understated/omitted (expense +, profit -)
add: expense overstated (expense -. profit +)
add: income understated (income +, profit +)
less: income overstated (income -, profit -)
adjusted profit for the year (after calculations)