Topic 4 - p1

Question 1

Trial balance

Answer 1

List of all balances of dr and cr where they must be balanced
Use RAIL

Question 2

Errors revealed by trial balance

Answer 2

Transposition
Addition
Unequal posting
Partial omission

Question 3

Errors not revealed by trial balance

Answer 3

Commission
Omissions
Principle
Compensating
Original entry
Reversal of entries

Question 4

Bank reconciliation statement

Answer 4

Bal on bank statement
Less: un presented payments
Add: amounts not yet credited
Balance on cash book

Question 5

SLCA

Answer 5

Dr
Bal bd
Credit sales
Dishonoured cheques from rec
Interest charged to rec
Cr
Money rec
Discounts all
Sales returns in
Irr debts written off
Contra entries

Question 6

PLCA

Answer 6

Dr
Money paid
Discounts rec
Purchases returns out
Contra entries
Cr
Bal bd
Credit purchases
Dishonoured cheques to payables
Interest charged by payables

Question 7

Suspense accounts

Answer 7

Temporary account used if the total debits and credits dont equal