Suspense A/Cs Flashcards
1
Q
suspense a/c
A
- temporary a/c
- record errors/ discrepancies
2
Q
Trial Balance
A
tests accuracy of double-entry bookkeeping before final a/cs.
total debts should= total credits.
Every debit has a corresponding credit entry.
3
Q
Errors not revealed by trial balance (know 4)
A
- omission
- commission
- complete reversal of entries
- original entry
- compensation
4
Q
Omission
A
Not been entered at all
5
Q
Commission
A
Put in correct class of a/c but incorrect a/c. e.g. cr purch. from A. Murray put in A. Murphy’s a/c
6
Q
Complete reversal of entries
A
Correct amount in correct a/c but wrong sides
7
Q
Original Entry
A
Error in books of first entry
8
Q
Compensation
A
(c= coincidence) two errors happen to cancel each other out
9
Q
Errors that are revealed by trial balance
A
- arithmetic
- double-entry (cr. entry has no corresponding dr. entry or v.v.)
- error when listing in trial balance
