Accounting 9706 · AS & A Level · Reconciliation and verification

Reconciliation and verification — practice question

Yasmine owns a retail business.
(a)[2]

State two types of error that a trial balance will uncover.

(b(i))[1]

Explain what is meant by an error of original entry.

(b(ii))[1]

Explain what is meant by an error of principle.

(b(iii))[1]

Explain what is meant by an error of commission.

(c)[5]

Prepare the suspense account to show the correction of the errors, making clear the difference that existed in the trial balance before the errors were corrected.

(d)[5]

Calculate the revised profit for the year once the errors have been corrected.

Worked solution & mark scheme

This 15-mark question has a full step-by-step worked solution and mark scheme. One marking point: A transposition error

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