Back to the full dot-point answer
SingaporeAccountingQuick questions
The Trial Balance and Correction of Errors
Quick questions on Correcting errors and the suspense account: N(A)-Level Principles of Accounts
5short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.
What is correcting errors that did not affect the trial balance?Show answer
For the six errors that leave the totals equal (omission, commission, principle, original entry, reversal, compensating), the correction is a normal journal entry: move the amount from the wrong place to the right place, or record what was missed. No suspense account is needed because the totals were never out.
What is clearing the suspense account?Show answer
As each error behind the difference is found, a correcting journal entry posts the amount to the right account and the opposite side to suspense. When all such errors are corrected, the suspense account balance falls to nil. Only errors that affected one side of the ledger involve the suspense account.
What is q1?Show answer
State when a suspense account is opened. [2 marks]
What is q2?Show answer
Give the journal entry to correct a sale of \150$ that was completely omitted (customer and sales). [2 marks]
What is q3?Show answer
Explain why a remaining balance on the suspense account is a warning sign. [2 marks]
Have a question we have not covered?
This dot-point answer is short enough that we have not extracted many short questions yet. Read the full dot-point answer or ask Mo, our study assistant, in the chat for follow ups.