Errors And Corrections Flashcards
When reconciling trade payables what will we use
We can reconcile the TP nominal ledger to the payables ledger. But also we can reconcile the supplier statements to the payables ledger also
How can we reconcile trade recievabkes
Reconcile the TR nominal ledger to the receivables ledger. Also we can reconcile the customer statement to the receivables ledger.
What is the double entry for a sales return
Dr sales return
Cr trade receivables
Double entry for purchase returns
Dr trade payables
Cr purchase returns
Contra double entry
Dr trade payables
Cr trade receivables
Irrecoverable debt double entry
Dr irrec debt
Cr trade receivable
Customer refund double entry
Dr trade receivable
Cr cash
Customer refund double entry
Dr trade receivable
Cr cash
Supplier refund double entry
Dr cash
Cr trade receivables
Dishonoured cheque double entry
Dr trade receivables
Cr cash
What is issued upon the return of a good
Credit not notifying customer what is no longer owed
What do we reconcile the cash at bank account with
Bank statement
What do we do with transaction the we can’t match to bank statements
Post them into the suspense account until they have been investigated.
Once investigated correcting journals are required to correctly record and then clear the suspense account
What are the common error the result in a correction to the cash T account
Unrecorded bank interest
Automated payments
Dishonoured cheques
What errors will require a bank statement to be corrected
Timing difference
