Accounting 0452 · IGCSE · Correction of errors

Correction of errors — practice question

Kia is a trader. The trial balance totals compiled on 30 April 2021 failed to agree, so the difference was entered into a suspense account. Kia subsequently found the errors listed in the table in part (a).
(a)[9]

Fill in the table below to show the entries needed to correct each error. The first row has already been done for you as an example.

(b)[5]

Draw up the suspense account, using the original trial balance difference as the balancing figure.

(c)[3]

The Abel account in Kia’s books showed that Kia owed him $327$ before the errors were adjusted. Calculate the correct amount which Kia owed Abel at 30 April 2021.

(d)[3]

State three reasons why Kia chose not to treat this as a non-current asset.

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