Past Paper Questions Correction of Errors
Uploaded by
1932godfreyPast Paper Questions Correction of Errors
Uploaded by
1932godfreyPAST PAPER QUESTIONS CORRECTION OF ERRORS
1. Nikita is a trader. The totals of her trial balance at 30 June 2021 did not agree. The
debits exceeded the credits by $2600. Nikita opened up a suspense account.
The following errors were later discovered.
1 Insurance of $2500 had been entered as $4500 in the insurance account. The correct
entry had been made in the cash book.
2 The total of the discount received column in the cash book of $500 had been debited to the
discount allowed account in the general ledger.
3 Credit sales of $1400 to Kajal had been correctly entered in the sales account, but debited
as $1000 in Kajal’s account.
4 A cheque of $700 received from Anisah had been correctly entered in the cash book, but
credited to Aisha’s account.
REQUIRED
(a) Prepare journal entries to correct errors 1 to 4. Narratives are not required.
(b) Prepare the suspense account. Start with the difference on the trial balance.
(c) Complete the statement to show the effect on the profit for the year of correcting
errors 1 to 4.
Where the error does not affect profit write ‘no effect’. Calculate the corrected profit
for the year.
Nikita
Statement of corrected profit for the year ended 30 June 2021
$
Profit for the year before corrections 28 000
Increase in profit $ Decrease in profit $
Error 1 .................. ..................
Error 2 .................. ..................
Error 3 .................. ..................
Error 4 .................. ..................
_________ _________
_________ _________ _________
Corrected profit for the year _________
1
2.
(b) Prepare the suspense account.
Rai’s original draft profit, before correcting the errors, was $9800.
REQUIRED
(c) Calculate Rai’s profit after correction of errors 1–5.
3. Anil is a trader. The totals of the trial balance he prepared on 31 December 2020 did not
agree. The debits exceeded the credits by $5140.
The following errors were later discovered.
1 The sales account had been undercast by $7100.
2 Sales returns of $520 had been posted as a credit to the purchases account. The correct
entry had been made in the customer’s account.
3 Bank charges of $320 had been correctly entered in the cash book, but had not been
entered in the bank charges account.
4 A cheque refund of $600 for insurance overpaid had been entered on the wrong side of the
bank account and no entry had been made in the insurance account.
a) Prepare journal entries to correct errors 1 to 4. Narratives are not required.
b) Complete the suspense account.
2
4. Rachel is a trader.
The totals of Rachel’s trial balance prepared on 30 September 2023 did not agree and
the difference was placed in a suspense account.
Rachel later discovered the errors shown in the following table.
REQUIRED
(a) Complete the following table to show the entries required to correct each error. The
first one has been completed as an example.
(b) Prepare the suspense account. Include the balancing figure as the original difference
on the trial balance.
Rachel’s draft profit before the errors were discovered was $18 243.
3
REQUIRED
(c) Calculate Rachel’s profit for the year ended 30 September 2023 after the errors in
the table have been corrected.
5. Neith later discovered the following errors.
1 The total of the general expenses’ column of the petty cash book, $32, for May 2020 had
been posted to the office expenses account.
2 A payment received, $75, from Anya, a credit customer, had been credited to the sales
account.
3 A credit purchase, $120, from Samir had been omitted from the books of account.
4 A cheque payment, $19, for office expenses, had been recorded as $91.
5 An invoice for office cleaning, $235, had been debited to the fixtures and equipment
account.
REQUIRED
a) Prepare the journal entry to correct each of the above errors. Narratives are not
required.
b) Complete the table by placing a tick (3) to indicate the effect of correcting each error
2 to 5. Ignore depreciation of non-current assets.
The effect of correcting error 1 has been shown as an example.
4
6. Mosi is a trader. The totals of his trial balance at 30 April 2022 did not agree and the
difference was placed in a suspense account.
Mosi later discovered the following errors.
1 Commission received, $96, had been debited to the discount received account. The entry
to the bank account was correctly made.
2 The total of the sales journal for April 2022, $1258, was transferred to the sales account as
$2185.
3 A cheque payment for motor expenses, $77, had been omitted from the book‑keeping
records.
4 A payment by electronic transfer, $135, was recorded as a payment in the petty cash book.
5 An invoice received from Tracey, $160, was credited to the account for Stacey.
REQUIRED
(a) Prepare the journal entries to correct errors 1–5. Narratives are not required.
(b) Prepare the suspense account. Include the original difference on the trial balance as
a balancing figure.
Mosi’s original draft profit, before correcting the errors, was $39 970.
REQUIRED
(c) Calculate Mosi’s corrected profit for the year ended 30 April 2022.
7. Sanjay, a trader, prepared his trial balance on 31 January 2018. The totals of the trial
balance did not agree. Sanjay entered the difference, a credit balance of $1110, in a
suspense account.
The following errors were later discovered.
1 The wages account had been undercast by $270.
2 Rent received, $1000, had been correctly entered in the bank account but no other
entry had been made.
3 Goods purchased on credit from Simon, $680, had been correctly entered in the
purchases account but had been posted to the account of Simone.
4 No entry had been made for stationery, $35, paid in cash.
5
5 Motor vehicle repairs, $700, had been debited to the motor vehicles account.
6 Purchases returns, $190, had been correctly entered in the supplier’s account but had
been debited to the sales returns account.
REQUIRED
(a) State two purposes of a trial balance.
(b) Name the type of error made in 3, 4 and 5
(c) Prepare the suspense account making the necessary entries to correct errors.
Balance or total the account as required.
(d) State whether all errors in Sanjay’s accounts have been discovered. Give your
reason.
8. Wasim is a trader. His financial year ends on 31 March.
The totals of his trial balance on 31 March 2017 did not agree. The difference was a
shortage on the debit side of $495. This was entered in a suspense account.
The following errors were later discovered.
1 The total of a page of the purchases account, $3842, had been carried forward as
$3824.
2 A cheque received from DEC Limited, $150, had been credited to the account of
DDE Limited.
3 The balance of the petty cash book, $100, had been omitted from the trial balance.
4 Repairs to a motor vehicle, $283, had been debited to the motor vehicles account.
5 Purchase of fixtures, $2000, on credit from OS Supplies had been debited to OS
Supplies and credited to fixtures account.
6 The total of the discount allowed column in the cash book, $250, had been credited
to the discount received account in the ledger.
7 The total of the analysis column for stationery in the petty cash book, $67, had not
been transferred to the stationery account in the ledger.
REQUIRED
(a) Prepare the suspense account. Start with the balance arising from the difference
on the trial balance. The account should be balanced or totalled as necessary
