Trial Balance And Suspence A/c Flashcards
What is used to draw up the trial balance?
The balance brought down in all the T accounts in all the ledgers
Name and describe the four types of error that will be revealed by a trial balance.
•addition error - mathematical errors when calculating balances on ledger accounts or totals in the books of prime entry,
• partial omission error - a transaction has only been entered as a debit or as a credit,
• transposition error an amount has been posted with two numbers the wrong way around,
• unequal posting error - different amounts have been debited and credited.
Which errors are corrected using the suspense account?
Errors which affect the trial balance.
How is the suspense account opened?
Trial balance difference on the Debit or Credit side using the difference between the debit total and credit total in the trial balance. The amount should be on the side which is lower in the trial balance.
Will the following error show on the trial balance? A bank payment for telephone expenses has been recorded has been recorded on the debit side of both the cash book and the telephone expneses account.
Yes
Will the following error show on the trial balance? A payment recorded in bank account for vehicle repairs has been entered in vehicles account.
No
Will the following error show on the trial balance? A sales invoice has been omitted from all accounting records.
No
Will the following error show on the trial balance? The balance of purchases returns account has been calculated incorrectly.
Yes
Will the following error show on the trial balance? A bank payment of £85 for stationery has been recorded as £58 in both accounts.
No
What entries are needed in the accounts of a business to correct the following error?
The credit balance on the purcahses returns account has been brought down as £345. It should have been £354.
Dr Purchase Returns Account £345, Cr Suspense Account £345, Dr Suspense Account £354, Cr Purchases returns £354
Dr Suspense Account £9, Cr Purchases Returns Account f9
What entries are needed in the accounts of a business to correct the following error?
The purchases account has been undercast by £100.
Dr Purchases Account £100, Cr Suspense Account £100
What entries are needed in the accounts of a business to correct the following error?
Discount received of £35 has been entered to the debit of the discount received account.
Dr Suspense Account £70, Cr Discount Received Acount £70 or
Dr Suspense Account £35, Cr Discount Received Account £35, Dr Suspense Account £35, Cr Discount
Received £35
What entries are needed to correct the error? The purchases day book had been over
added by £1,100.
Dr Suspense Account £1100, Cr Purchases Account £1100
What entries are needed to correct the error? The total of the sales day book £198,000
had been posted to the sales account as £189,000.
Dr Suspense Account £9000, Cr Sales Account £9000 or
Dr Sales Account £189000, Cr Suspense Account £189000, Dr Suspense Account £198000, Cr Sales
Account £198000
.
What entries are needed to correct the error? Goods taken by Quinn for private use to the value of £950 had not been recorded in the books.
Dr Purchases Account £950, Cr Drawings Account £950
