Accounting Errors – NBC Institute

FA – May 2013 – L1 – SA – Q13 – Correction of Errors

This question deals with correcting an accounting error related to partner’s drawings.

Question

The repairs of the personal vehicle of a partner’s wife were wrongly treated as part of motor vehicle expenses of the partnership. Which of the following accounting entries is required to correct the error?

Debit | Credit
A. Partner’s Drawings Account | Motor vehicle expenses account
B. Motor vehicle expenses account | Partner’s current account
C. Motor vehicle expenses account | Partner’s drawings account
D. Motor vehicle expenses account | Partner’s current account
E. Partner’s capital account | Motor vehicle expenses account

Answer

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Tags: Accounting Errors, Partner’s Drawings
Level: Level 1

Topic: Correction of errors
Series: MAY 2013

FA – Nov 2013 – L1 – SA – Q13 – Trial Balance: Usefulness and Limitations

Identifying the type of error that does not affect a trial balance.

Question

Which of the following errors will NOT affect the agreement of a Trial Balance?

A. Error in computation of balances
B. Transposition of figures
C. Errors of wrong posting in the debit and credit columns
D. Errors of principle
E. Double entry errors

Answer

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Tags: Accounting Errors, Double Entry, Trial Balance
Level: Level 1

Topic: Trial Balance: Usefulness and Limitations
Series: NOV 2013

FA – May 2021 – L1 – SA – Q5 – Double-Entry Accounting Principles

Correct the effect of error in recording a credit sale.

Question

A credit sale of ₦257,000 was recorded in the day book as ₦275,000. The effect is that
A. Assets, liabilities, and equity are understated
B. Assets, liabilities, and equity are overstated
C. Assets and liabilities are overstated; no effect on equity
D. Assets and equity are overstated; no effect on liabilities
E. Equity and liabilities are understated; no effect on assets

Answer

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Tags: Accounting Errors, Double Entry, Recording Errors
Level: Level 1

Topic: Double-Entry Accounting Principles
Series: MAY 2021

FA – May 2017 – L1 – SA – Q11 – Control Accounts

Involves adjusting a Payable Ledger Control Account balance after a contra entry was wrongly entered.

Question

A Payable Ledger Control Account had a closing balance of N102,000. This included a contra to the sales ledger of N4,800, which had been entered on the wrong side of the control account.

The correct balance on the control account should be:
A. N92,400 credit
B. N98,200 credit
C. N100,800 credit
D. N106,800 credit
E. N111,600 credit

Answer

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Tags: Accounting Errors, Contra Entry, Control Accounts, Payables Ledger
Level: Level 1

Topic: Control Accounts
Series: MAY 2017

FA – MAY 2015 – L1 – SA – Q13 – Trial Balance: Usefulness and Limitations

Identify the type of error that does not affect the balancing of the trial balance.

Question

Which of the following errors does NOT affect the balancing of a trial balance?
A. Error of principle
B. Casting error
C. Transposition error
D. Duplication of entries
E. Missing entries in the ledger

Answer

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Tags: Accounting Errors, Error of Principle, Trial Balance
Level: Level 1

Topic: Trial Balance: Usefulness and Limitations
Series: MAY 2015

FA – Mar/July 2020 – L1 – SB – Q5 – Control Accounts

Preparation of receivables and payables ledger control accounts, uses of control accounts, and accounting errors not detectable by trial balance.

Question

The following balances were extracted from the books of Judexco Limited on December 31, 2018:

Required:
a. Prepare the receivables ledger control account. (7 Marks)
b. Prepare the purchases ledger control account. (6 Marks)
c. List FOUR uses of control accounts. (4 Marks)
d. Outline SIX accounting errors that cannot be discovered by means of a trial balance. (3 Marks)

Answer

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Tags: Accounting Errors, Control Accounts, Payables Ledger, Receivables Ledger
Level: Level 1

Topic: Control Accounts
Series: MAR/JULY 2020

FA – May 2016 – L1 – Q3 – Bank reconciliations

Prepare an adjusted cash book, a bank reconciliation statement, and discuss the benefits of reconciling cash book and bank statement balances.

Question

The following is a summary from the cash book of BW Ltd for July 2015:

Description	GH¢
Opening balance	1,530
Receipts	23,104
Payments	(23,005)
Closing balance	1,629

On investigation, it was discovered that:
i) Bank charges of GH¢15 shown on the bank statement have not been entered in the cash book.
ii) A cheque drawn for GH¢110 to pay a supplier has been entered in the cash book as a receipt.
iii) A cheque from a customer for GH¢120, which was banked (and included above in receipts), has been returned by the bank, but this has not been adjusted in the company’s books.
iv) An error of transposition which occurred in the opening balance of the cash book should have been recorded as GH¢1,350.
v) Cheques totaling GH¢264 have been sent by post to suppliers but were not presented to the company’s bank until August 2015.
vi) The last page of a bank account paying-in book shows a deposit of GH¢1,040 which was not credited to the account by the bank until 1st August 2015.
vii) The company’s bank statement at 31st July 2015 shows a balance of GH¢318.

Required:
a) Demonstrate any adjustments needed to the company’s accounting records. (8 marks)
b) Prepare a Bank Reconciliation Statement as at 31st July 2015. (6 marks)
c) Explain THREE benefits to BW Ltd of reconciling its cash book and bank statement balances. (6 marks)

Answer

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Tags: Accounting Errors, Adjustments, Bank Reconciliation Statement, Cash Book
Level: Level 1

Topic: Bank reconciliations
Series: MAY 2016

FA – May 2016 – L1 – Q2 – Control accounts and account reconciliations

Prepare a revised Sales Ledger Control Account, a corrected Schedule of Receivables, and discuss advantages of using control accounts.

Question

(a) The Sales Ledger Control Account of PC Ltd for the year ended 31st December 2014 has been prepared from the following information:

The Sales Ledger Control Account balance, which is part of the double-entry system, failed to agree with the total receivables of GH¢189,380 as shown by the Schedule of Receivables. The following errors were subsequently discovered:

i) A customer had returned goods to PC Ltd at the selling price of GH¢2,400. The goods had been bought on credit. No entries had been made to record the return of the goods in the accounts of PC Ltd.
ii) The discounts allowed column in the cash book had been overcast by GH¢1,080.
iii) No contra entry had been made in the receivables account in the sales ledger in respect of purchases by PC Ltd of goods at a list price of GH¢2,000. PC Ltd received a trade discount of 10% on these goods. This transaction had been correctly dealt with in the Sales Ledger Control Account.
iv) A credit sale of GH¢3,520 to JT Ltd was correctly recorded in the Sales Ledger Control Account, but no other entry had been made.
v) A cheque received from a customer for GH¢6,900, correctly processed through the books, had subsequently been dishonoured. No entries have yet been made to record this dishonoured cheque.
vi) DT Ltd, a customer, has recently been declared bankrupt and the debt of GH¢3,500 is to be written off, but no entries have yet been made.

Required:
a) Prepare a revised Sales Ledger Control Account for the year ended 31 December 2014. (9 marks)
b) Prepare a statement showing the correct total of the Schedule of Receivables for the year ended 31 December, 2014. (5 marks)
c) Discuss TWO advantages to PC Ltd of using control accounts. (6 marks)

Answer

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Tags: Accounting Errors, Control Accounts, Sales Ledger, Schedule of Receivables
Level: Level 1

Topic: Control accounts and account reconciliations
Series: MAY 2016

FA – May 2013 – L1 – SA – Q13 – Correction of Errors

This question deals with correcting an accounting error related to partner’s drawings.

Question

Answer

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Tags: Accounting Errors, Partner’s Drawings
Level: Level 1

Topic: Correction of errors
Series: MAY 2013

FA – Nov 2013 – L1 – SA – Q13 – Trial Balance: Usefulness and Limitations

Identifying the type of error that does not affect a trial balance.

Question

Which of the following errors will NOT affect the agreement of a Trial Balance?

A. Error in computation of balances
B. Transposition of figures
C. Errors of wrong posting in the debit and credit columns
D. Errors of principle
E. Double entry errors

Answer

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Tags: Accounting Errors, Double Entry, Trial Balance
Level: Level 1

Topic: Trial Balance: Usefulness and Limitations
Series: NOV 2013

FA – May 2021 – L1 – SA – Q5 – Double-Entry Accounting Principles

Correct the effect of error in recording a credit sale.

Question

Answer

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Tags: Accounting Errors, Double Entry, Recording Errors
Level: Level 1

Topic: Double-Entry Accounting Principles
Series: MAY 2021

FA – May 2017 – L1 – SA – Q11 – Control Accounts

Involves adjusting a Payable Ledger Control Account balance after a contra entry was wrongly entered.

Question

A Payable Ledger Control Account had a closing balance of N102,000. This included a contra to the sales ledger of N4,800, which had been entered on the wrong side of the control account.

The correct balance on the control account should be:
A. N92,400 credit
B. N98,200 credit
C. N100,800 credit
D. N106,800 credit
E. N111,600 credit

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Errors, Contra Entry, Control Accounts, Payables Ledger
Level: Level 1

Topic: Control Accounts
Series: MAY 2017

FA – MAY 2015 – L1 – SA – Q13 – Trial Balance: Usefulness and Limitations

Identify the type of error that does not affect the balancing of the trial balance.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Errors, Error of Principle, Trial Balance
Level: Level 1

Topic: Trial Balance: Usefulness and Limitations
Series: MAY 2015

FA – Mar/July 2020 – L1 – SB – Q5 – Control Accounts

Preparation of receivables and payables ledger control accounts, uses of control accounts, and accounting errors not detectable by trial balance.

Question

Answer

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Tags: Accounting Errors, Control Accounts, Payables Ledger, Receivables Ledger
Level: Level 1

Topic: Control Accounts
Series: MAR/JULY 2020

FA – May 2016 – L1 – Q3 – Bank reconciliations

Prepare an adjusted cash book, a bank reconciliation statement, and discuss the benefits of reconciling cash book and bank statement balances.

Question

The following is a summary from the cash book of BW Ltd for July 2015:

Description	GH¢
Opening balance	1,530
Receipts	23,104
Payments	(23,005)
Closing balance	1,629

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Errors, Adjustments, Bank Reconciliation Statement, Cash Book
Level: Level 1

Topic: Bank reconciliations
Series: MAY 2016

FA – May 2016 – L1 – Q2 – Control accounts and account reconciliations

Prepare a revised Sales Ledger Control Account, a corrected Schedule of Receivables, and discuss advantages of using control accounts.

Question

(a) The Sales Ledger Control Account of PC Ltd for the year ended 31st December 2014 has been prepared from the following information:

Answer

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Tags: Accounting Errors, Control Accounts, Sales Ledger, Schedule of Receivables
Level: Level 1

Topic: Control accounts and account reconciliations
Series: MAY 2016

Question Tag: Accounting Errors

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FA – May 2013 – L1 – SA – Q13 – Correction of Errors

This question deals with correcting an accounting error related to partner’s drawings.

You're reporting an error for "FA – May 2013 – L1 – SA – Q13 – Correction of Errors"

FA – Nov 2013 – L1 – SA – Q13 – Trial Balance: Usefulness and Limitations

Identifying the type of error that does not affect a trial balance.

You're reporting an error for "FA – Nov 2013 – L1 – SA – Q13 – Trial Balance: Usefulness and Limitations"

FA – May 2021 – L1 – SA – Q5 – Double-Entry Accounting Principles

Correct the effect of error in recording a credit sale.

You're reporting an error for "FA – May 2021 – L1 – SA – Q5 – Double-Entry Accounting Principles"

FA – May 2017 – L1 – SA – Q11 – Control Accounts

Involves adjusting a Payable Ledger Control Account balance after a contra entry was wrongly entered.

You're reporting an error for "FA – May 2017 – L1 – SA – Q11 – Control Accounts"

FA – MAY 2015 – L1 – SA – Q13 – Trial Balance: Usefulness and Limitations

Identify the type of error that does not affect the balancing of the trial balance.

You're reporting an error for "FA – MAY 2015 – L1 – SA – Q13 – Trial Balance: Usefulness and Limitations"

FA – Mar/July 2020 – L1 – SB – Q5 – Control Accounts

Preparation of receivables and payables ledger control accounts, uses of control accounts, and accounting errors not detectable by trial balance.

You're reporting an error for "FA – Mar/July 2020 – L1 – SB – Q5 – Control Accounts"

FA – May 2016 – L1 – Q3 – Bank reconciliations

Prepare an adjusted cash book, a bank reconciliation statement, and discuss the benefits of reconciling cash book and bank statement balances.

You're reporting an error for "FA – May 2016 – L1 – Q3 – Bank reconciliations"

FA – May 2016 – L1 – Q2 – Control accounts and account reconciliations

Prepare a revised Sales Ledger Control Account, a corrected Schedule of Receivables, and discuss advantages of using control accounts.

You're reporting an error for "FA – May 2016 – L1 – Q2 – Control accounts and account reconciliations"

FA – May 2013 – L1 – SA – Q13 – Correction of Errors

This question deals with correcting an accounting error related to partner’s drawings.

You're reporting an error for "FA – May 2013 – L1 – SA – Q13 – Correction of Errors"

FA – Nov 2013 – L1 – SA – Q13 – Trial Balance: Usefulness and Limitations

Identifying the type of error that does not affect a trial balance.

You're reporting an error for "FA – Nov 2013 – L1 – SA – Q13 – Trial Balance: Usefulness and Limitations"

FA – May 2021 – L1 – SA – Q5 – Double-Entry Accounting Principles

Correct the effect of error in recording a credit sale.

You're reporting an error for "FA – May 2021 – L1 – SA – Q5 – Double-Entry Accounting Principles"

FA – May 2017 – L1 – SA – Q11 – Control Accounts

Involves adjusting a Payable Ledger Control Account balance after a contra entry was wrongly entered.

You're reporting an error for "FA – May 2017 – L1 – SA – Q11 – Control Accounts"

FA – MAY 2015 – L1 – SA – Q13 – Trial Balance: Usefulness and Limitations

Identify the type of error that does not affect the balancing of the trial balance.

You're reporting an error for "FA – MAY 2015 – L1 – SA – Q13 – Trial Balance: Usefulness and Limitations"

FA – Mar/July 2020 – L1 – SB – Q5 – Control Accounts

Preparation of receivables and payables ledger control accounts, uses of control accounts, and accounting errors not detectable by trial balance.

You're reporting an error for "FA – Mar/July 2020 – L1 – SB – Q5 – Control Accounts"

FA – May 2016 – L1 – Q3 – Bank reconciliations

Prepare an adjusted cash book, a bank reconciliation statement, and discuss the benefits of reconciling cash book and bank statement balances.

You're reporting an error for "FA – May 2016 – L1 – Q3 – Bank reconciliations"

FA – May 2016 – L1 – Q2 – Control accounts and account reconciliations

Prepare a revised Sales Ledger Control Account, a corrected Schedule of Receivables, and discuss advantages of using control accounts.

You're reporting an error for "FA – May 2016 – L1 – Q2 – Control accounts and account reconciliations"

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