Accounting 9706 · AS & A Level · Reconciliation and verification

Reconciliation and verification — practice question

Douglas compiled a trial balance and noticed that the debit column total was $50$ greater than the credit column total. The errors identified were as follows: error 1: a purchases invoice for $100$ had been entered incorrectly; error 2: an irrecoverable debt of $50$ had been entered incorrectly. Which pair of these two errors together produced the difference between the totals?

  • Aerror 1: recorded in purchases journal at $50$; error 2: both entries reversed
  • Berror 1: recorded in purchases journal at $50$; error 2: not recorded at all
  • Cerror 1: recorded in sales journal rather than purchases journal; error 2: recorded in expense account only
  • Derror 1: recorded in sales journal rather than purchases journal; error 2: recorded in sales ledger account only

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