Suspense Accounts And Error Correction

Question 1

Omission of entire transaction

Answer 1

No debit or credit entry made

Question 2

Commission

Answer 2

Transaction entered in the wrong acc but in the correct classification e.g. rent invoice is debited to light and heat in spl instead of rent expense

Question 3

Principle

Answer 3

Transaction entered in the wrong acc classsification, e.g. repairs invoice is debited to computer equipment in the sofp rather than repairs and maintenance expense in sopl

Question 4

Reversal

Answer 4

Debit and credit have been swapped= double posting error

Question 5

Original entry

Answer 5

Debit and credit by the wrong amount e.g. rent paid for £1000 is recorded as debit rent £100 credit bank £100

Question 6

What step to take when correcting errors

Answer 6

Step 1. What did happen
Step2. Whatshould have happened

Step3. What correction is required

Question 7

What are the errors that would cause the trial balance not to balance?

Answer 7

1 casting = addition error within general ledger

2- one- sided posting errrors

3- trial balance errors

4- single entry

5- transposition