Accounting 9706 · AS & A Level · Reconciliation and verification

Reconciliation and verification — practice question

Sana keeps complete accounting records. She has drawn up a trial balance, but the two totals do not match.
(a)[2]

State two advantages of preparing a trial balance.

(b)[8]

Prepare the journal entries needed to correct the errors. Narratives are unnecessary.

(c)[2]

State what is meant by an error of principle. Illustrate your answer with one example.

(d)[3]

Explain, with reference to an accounting concept, why Sana must record goods taken for own use.

Worked solution & mark scheme

This 15-mark question has a full step-by-step worked solution and mark scheme. One marking point: Gives a check on the arithmetical accuracy of the double-entry records

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