Question Tag: Error Correction

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FA – Nov 2024 – L1 – Q3a – Correction of Errors

Identify and correct accounting errors using journal entries, suspense account, and revised profit calculations.

Question

The trial balance for Aboadze Ltd for the year ended 31 December 2022 failed to agree, showing a difference of GH¢3,600, which was credited to the suspense account. The draft account reported a net profit of GH¢435,000.

During 2023, the following errors were identified:

GH¢30,000 received from the sale of old machinery was incorrectly recorded in the sales account.
The purchase day book was overstated by GH¢48,000.
A private purchase by the director worth GH¢36,000 was included in the company’s purchases.
Bank charges of GH¢14,400 were recorded in the cash book but not posted to the bank charges account.
A sale of GH¢207,000 to Kofi was correctly entered in the sales day book but posted as GH¢270,000 in the personal account.
Discount received of GH¢13,500 was incorrectly posted to the debit side of the discount allowed account.
Wages of GH¢120,000 paid were not posted from the cash book.

Required:

i) Show the journal entries to correct the errors.

ii) Write up the suspense account to eliminate the errors.

iii) Prepare a statement to show the revised profit.

Answer

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Tags: Accounting Adjustments, Error Correction, Financial Statements, Journal Entries, Suspense account, Trial Balance
Level: Level 1

Topic: Correction of errors
Series: Nov 2024

FA – May 2012 – L1 – SA – Q14 – Correction of Errors

Identifying the type of error when maintenance cost is debited to the wrong account.

Question

The amount of N500,000 for the maintenance of the factory machine was debited to the Plant and Machinery account after crediting the bank account with the same amount. Which error has been committed?

A. Complete reversal of entries
B. Error of commission
C. Error of original entry
D. Error of omission
E. Error of principle

Answer

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Tags: Error Correction, Maintenance Cost, Principle
Level: Level 1

Topic: Correction of errors
Series: MAY 2012

FA – Nov 2020 – L1 – SA – Q20 – Bank Reconciliation

Determines the correct overdraft position after reconciling bank errors.

Question

Bode’s cash book showed he had an overdraft of N20,300. A bank reconciliation, however, indicated that a standing order payment of N3,650 had been entered in the cash book twice, and that a returned customer’s cheque for N2,750 had been debited in the cash account.

What is Bode’s true overdraft position?
A. N12,150
B. N18,450
C. N19,400
D. N21,200
E. N22,150

Answer

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Tags: Bank Reconciliation, Error Correction, Overdraft Position
Level: Level 1

Topic: Bank reconciliations
Series: NOV 2020

FA – Nov 2020 – L1 – SA – Q16 – Correction of Errors

Identifies the correct journal entry to fix a sales/purchase misposting.

Question

Jone Bosco has credit facility with a local trade supplier. A purchase invoice was credited to the supplier’s account and debited to the sales account.

Which of the following journal entries will correct the error?

Account to be Debited	Account to be Credited
A. Sales	Supplier
B. Sales	Purchases
C. Sales	Payables
D. Purchases	Sales
E. Supplier	Sales

Answer

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Tags: Error Correction, Journal Entries
Level: Level 1

Topic: Correction of errors
Series: NOV 2020

FA – Nov 2020 – L1 – SA – Q5 – Accounting for Inventories in Accordance with IAS 2

Effect of closing inventory overvaluation on reported profit.

Question

The closing inventories of a firm were overvalued by N300,000 due to an overcast error in one of the inventory valuation sheets.

How would the correction of this affect the reported profit?
A. Increase reported profit by N300,000
B. Reduce reported profit by N300,000
C. No effect on the reported profit
D. Increase reported profit by N600,000
E. Reduce reported profit by N600,000

Answer

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Tags: Error Correction, Inventory Valuation, Profit Impact
Level: Level 1

Topic: Accounting for Inventories (IAS 2)
Series: NOV 2020

FA – Nov 2012 – L1 – SB – Q35 – Correction of Errors

Determine the effect of inventory understatement on profits for two years.

Question

In preparing a company’s financial statements for the year ended 30 September 2012, it was discovered that the company’s closing inventory was understated by N450,000. If the error remains uncorrected, the effect of this on the profits for 2012 and 2013 will be?

Answer

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Tags: Error Correction, Inventory, Profit
Level: Level 1

Topic: Correction of errors
Series: NOV 2012

FA – May 2014 – L1 – SA – Q6 – Correcting Errors

Corrects an error in recording machinery purchase.

Question

A company purchased machinery for ₦900,000. The company’s Accountant recorded the transaction in the company’s books by debiting the Purchases Account instead of debiting a Non-Current Asset Account. Raise journal entries to correct the error.

Answer

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Tags: Error Correction, Non-current Assets, Purchases
Level: Level 1

Topic: Correction of errors
Series: MAY 2014

FA – Nov 2015 – L1 – SA – Q7 – Correction of Errors

This question asks for the correct journal entry to rectify an error in recording staff uniform expenses.

Question

Abiao Company purchased security staff uniform for N250,000. The Accounts Officer felt that the amount was too high to be charged to expenses and consequently debited the amount to the office equipment account.
The journal entry to correct this error is:
A. Dr. Staff uniform account Cr. Office equipment account
B. Dr. Staff uniform account Cr. Suspense account
C. Dr. Office equipment account Cr. Suspense account
D. Dr. Office equipment account Cr. Staff uniform account
E. Dr. Purchases account Cr. Office equipment account

Answer

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Tags: Accounting principles, Error Correction, Journal Entries
Level: Level 1

Topic: Correction of errors
Series: NOV 2015

FA – Nov 2021 – L1 – SA – Q3 – Correction of errors

This question asks about correcting errors in ledger accounts.

Question

A cheque of N5,000,000 paid to Alhaji Daleko was correctly entered in the cash book but omitted in Alhaji Daleko’s account. To correct this error, debit Alhaji Daleko’s account and credit:
A. Cash account
B. Bank account
C. Suspense account
D. Purchases account
E. Control account

Answer

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Tags: Error Correction, Ledger Balances, Multiple Choice
Level: Level 1

Topic: Correction of errors
Series: NOV 2021

FA – May 2022 – L1 – SB – Q5 – Correction of Errors

Prepare a trial balance, journal entries to correct errors, and a suspense account for Jaja's sole trader business.

Question

Jaja is a sole trader. The trial balance extracted from the balances below, as at March 31, 2021, failed to agree:

Account Description	₦’000
Sales	71,130
Sales Returns	2,100
Purchases	22,150
Expenses	10,710
Non-Current Assets	22,750
Discounts Allowed	740
VAT Liability	6,320
Payables	14,840
Receivables	52,850
Bank Overdraft	3,140
Capital as at April 1, 2020	12,500

A detailed examination of the books revealed the following errors:
(i) The total in the purchases day book was ₦42,150,000, but only ₦22,150,000 was posted to the purchases account.
(ii) An invoice from a supplier for goods worth ₦8,500,000 was omitted from the books.
(iii) Interest earned during the year of ₦105,140,000 was not accounted for in the bank reconciliation.
(iv) Sales returns of ₦1,560,000 was correctly treated in the customer’s account but was credited as ₦560,000 in the sales returns account.
(v) Receivables were overcast by ₦29,830,000.
(vi) Cash drawings by Jaja of ₦2,170,000 were mistakenly credited as cash sales.

Required:
a. Prepare the trial balance of Jaja as at March 31, 2021, and derive the balance in the suspense account as at that date. (6 Marks)
b. Prepare the journal entries, with appropriate narrations, necessary to correct the above errors. (10 Marks)
c. Prepare the suspense account. (4 Marks)

Answer

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Tags: Error Correction, Journal Entries, Suspense account, Trial Balance
Level: Level 1

Topic: Correction of errors
Series: MAY 2022

FA – Nov 2024 – L1 – Q3a – Correction of Errors

Identify and correct accounting errors using journal entries, suspense account, and revised profit calculations.

Question

During 2023, the following errors were identified:

GH¢30,000 received from the sale of old machinery was incorrectly recorded in the sales account.
The purchase day book was overstated by GH¢48,000.
A private purchase by the director worth GH¢36,000 was included in the company’s purchases.
Bank charges of GH¢14,400 were recorded in the cash book but not posted to the bank charges account.
A sale of GH¢207,000 to Kofi was correctly entered in the sales day book but posted as GH¢270,000 in the personal account.
Discount received of GH¢13,500 was incorrectly posted to the debit side of the discount allowed account.
Wages of GH¢120,000 paid were not posted from the cash book.

Required:

i) Show the journal entries to correct the errors.

ii) Write up the suspense account to eliminate the errors.

iii) Prepare a statement to show the revised profit.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Adjustments, Error Correction, Financial Statements, Journal Entries, Suspense account, Trial Balance
Level: Level 1

Topic: Correction of errors
Series: Nov 2024

FA – May 2012 – L1 – SA – Q14 – Correction of Errors

Identifying the type of error when maintenance cost is debited to the wrong account.

Question

The amount of N500,000 for the maintenance of the factory machine was debited to the Plant and Machinery account after crediting the bank account with the same amount. Which error has been committed?

A. Complete reversal of entries
B. Error of commission
C. Error of original entry
D. Error of omission
E. Error of principle

Answer

Find Related Questions by Tags, levels, etc.

Tags: Error Correction, Maintenance Cost, Principle
Level: Level 1

Topic: Correction of errors
Series: MAY 2012

FA – Nov 2020 – L1 – SA – Q20 – Bank Reconciliation

Determines the correct overdraft position after reconciling bank errors.

Question

What is Bode’s true overdraft position?
A. N12,150
B. N18,450
C. N19,400
D. N21,200
E. N22,150

Answer

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Tags: Bank Reconciliation, Error Correction, Overdraft Position
Level: Level 1

Topic: Bank reconciliations
Series: NOV 2020

FA – Nov 2020 – L1 – SA – Q16 – Correction of Errors

Identifies the correct journal entry to fix a sales/purchase misposting.

Question

Jone Bosco has credit facility with a local trade supplier. A purchase invoice was credited to the supplier’s account and debited to the sales account.

Which of the following journal entries will correct the error?

Account to be Debited	Account to be Credited
A. Sales	Supplier
B. Sales	Purchases
C. Sales	Payables
D. Purchases	Sales
E. Supplier	Sales

Answer

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Tags: Error Correction, Journal Entries
Level: Level 1

Topic: Correction of errors
Series: NOV 2020

FA – Nov 2020 – L1 – SA – Q5 – Accounting for Inventories in Accordance with IAS 2

Effect of closing inventory overvaluation on reported profit.

Question

The closing inventories of a firm were overvalued by N300,000 due to an overcast error in one of the inventory valuation sheets.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Error Correction, Inventory Valuation, Profit Impact
Level: Level 1

Topic: Accounting for Inventories (IAS 2)
Series: NOV 2020

FA – Nov 2012 – L1 – SB – Q35 – Correction of Errors

Determine the effect of inventory understatement on profits for two years.

Question

Answer

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Tags: Error Correction, Inventory, Profit
Level: Level 1

Topic: Correction of errors
Series: NOV 2012

FA – May 2014 – L1 – SA – Q6 – Correcting Errors

Corrects an error in recording machinery purchase.

Question

Answer

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Tags: Error Correction, Non-current Assets, Purchases
Level: Level 1

Topic: Correction of errors
Series: MAY 2014

FA – Nov 2015 – L1 – SA – Q7 – Correction of Errors

This question asks for the correct journal entry to rectify an error in recording staff uniform expenses.

Question

Answer

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Tags: Accounting principles, Error Correction, Journal Entries
Level: Level 1

Topic: Correction of errors
Series: NOV 2015

FA – Nov 2021 – L1 – SA – Q3 – Correction of errors

This question asks about correcting errors in ledger accounts.

Question

Answer

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Tags: Error Correction, Ledger Balances, Multiple Choice
Level: Level 1

Topic: Correction of errors
Series: NOV 2021

FA – May 2022 – L1 – SB – Q5 – Correction of Errors

Prepare a trial balance, journal entries to correct errors, and a suspense account for Jaja's sole trader business.

Question

Jaja is a sole trader. The trial balance extracted from the balances below, as at March 31, 2021, failed to agree:

Account Description	₦’000
Sales	71,130
Sales Returns	2,100
Purchases	22,150
Expenses	10,710
Non-Current Assets	22,750
Discounts Allowed	740
VAT Liability	6,320
Payables	14,840
Receivables	52,850
Bank Overdraft	3,140
Capital as at April 1, 2020	12,500

Answer

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Tags: Error Correction, Journal Entries, Suspense account, Trial Balance
Level: Level 1

Topic: Correction of errors
Series: MAY 2022

Question Tag: Error Correction

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FA – Nov 2024 – L1 – Q3a – Correction of Errors

Identify and correct accounting errors using journal entries, suspense account, and revised profit calculations.

Required:

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FA – May 2012 – L1 – SA – Q14 – Correction of Errors

Identifying the type of error when maintenance cost is debited to the wrong account.

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FA – Nov 2020 – L1 – SA – Q20 – Bank Reconciliation

Determines the correct overdraft position after reconciling bank errors.

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FA – Nov 2020 – L1 – SA – Q16 – Correction of Errors

Identifies the correct journal entry to fix a sales/purchase misposting.

You're reporting an error for "FA – Nov 2020 – L1 – SA – Q16 – Correction of Errors"

FA – Nov 2020 – L1 – SA – Q5 – Accounting for Inventories in Accordance with IAS 2

Effect of closing inventory overvaluation on reported profit.

You're reporting an error for "FA – Nov 2020 – L1 – SA – Q5 – Accounting for Inventories in Accordance with IAS 2"

FA – Nov 2012 – L1 – SB – Q35 – Correction of Errors

Determine the effect of inventory understatement on profits for two years.

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FA – May 2014 – L1 – SA – Q6 – Correcting Errors

Corrects an error in recording machinery purchase.

You're reporting an error for "FA – May 2014 – L1 – SA – Q6 – Correcting Errors"

FA – Nov 2015 – L1 – SA – Q7 – Correction of Errors

This question asks for the correct journal entry to rectify an error in recording staff uniform expenses.

You're reporting an error for "FA – Nov 2015 – L1 – SA – Q7 – Correction of Errors"

FA – Nov 2021 – L1 – SA – Q3 – Correction of errors

This question asks about correcting errors in ledger accounts.

You're reporting an error for "FA – Nov 2021 – L1 – SA – Q3 – Correction of errors"

FA – May 2022 – L1 – SB – Q5 – Correction of Errors

Prepare a trial balance, journal entries to correct errors, and a suspense account for Jaja's sole trader business.

You're reporting an error for "FA – May 2022 – L1 – SB – Q5 – Correction of Errors"

FA – Nov 2024 – L1 – Q3a – Correction of Errors

Identify and correct accounting errors using journal entries, suspense account, and revised profit calculations.

Required:

You're reporting an error for "FA – Nov 2024 – L1 – Q3a – Correction of Errors"

FA – May 2012 – L1 – SA – Q14 – Correction of Errors

Identifying the type of error when maintenance cost is debited to the wrong account.

You're reporting an error for "FA – May 2012 – L1 – SA – Q14 – Correction of Errors"

FA – Nov 2020 – L1 – SA – Q20 – Bank Reconciliation

Determines the correct overdraft position after reconciling bank errors.

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FA – Nov 2020 – L1 – SA – Q16 – Correction of Errors

Identifies the correct journal entry to fix a sales/purchase misposting.

You're reporting an error for "FA – Nov 2020 – L1 – SA – Q16 – Correction of Errors"

FA – Nov 2020 – L1 – SA – Q5 – Accounting for Inventories in Accordance with IAS 2

Effect of closing inventory overvaluation on reported profit.

You're reporting an error for "FA – Nov 2020 – L1 – SA – Q5 – Accounting for Inventories in Accordance with IAS 2"

FA – Nov 2012 – L1 – SB – Q35 – Correction of Errors

Determine the effect of inventory understatement on profits for two years.

You're reporting an error for "FA – Nov 2012 – L1 – SB – Q35 – Correction of Errors"

FA – May 2014 – L1 – SA – Q6 – Correcting Errors

Corrects an error in recording machinery purchase.

You're reporting an error for "FA – May 2014 – L1 – SA – Q6 – Correcting Errors"

FA – Nov 2015 – L1 – SA – Q7 – Correction of Errors

This question asks for the correct journal entry to rectify an error in recording staff uniform expenses.

You're reporting an error for "FA – Nov 2015 – L1 – SA – Q7 – Correction of Errors"

FA – Nov 2021 – L1 – SA – Q3 – Correction of errors

This question asks about correcting errors in ledger accounts.

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FA – May 2022 – L1 – SB – Q5 – Correction of Errors

Prepare a trial balance, journal entries to correct errors, and a suspense account for Jaja's sole trader business.

You're reporting an error for "FA – May 2022 – L1 – SB – Q5 – Correction of Errors"

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