Worksheet

Correcting Errors

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Practice sums from text books
Sample assessment paper problem
list of all the problems

Course Instructor : Manarat Ahmed

Exercise Sum # 1 (errors not affecting trial balance)
Show the journal entries with narrations necessary to correct the following errors:
Jan 10..A sale of goods 412 to T More had been entered in T Mones account.
Jan 11. The purchase of a machine on credit from J Frank for 619 had been completely omitted from
our books.
Jan 12. The purchase of a computer for 550 had been entered in error in the Office Expenses
account.
Jan 13. A sale of 120 to B Wood had been entered in the books, both debit and credit, as 102.
Correcting Errors | 1

Jan 14. Commission received 164 had been entered in error in the Sales account.
Jan 15. A receipt of cash from T Blair 68 had been entered on the credit side of the cash book and
the debit side of T Blairs account.
Jan 16. A purchase of goods 372 had been entered in error on the debit side of the Drawings
account.
Jan 17. A sale of 120 to B Wood had been entered in the books, both debit and credit, as 150.
Date

Details

Dr.

Cr.

Correcting Errors | 2

Exercise Sum # 2 (errors not affecting trial balance)

Show the journal entries with narrations necessary to correct the following errors:
Jan 18. Purchases 1,410 on credit from A Ray had been entered in B Roys account.
Jan 19. A cheque of 94 paid for printing had been entered in the cash column of the cash book
instead of in the bank column.
Jan 20.Sale of goods 734 on credit to D Rolls had been entered in error in D Rollos account.
Jan 21.Purchase of goods on credit L Hand 819 entered in the correct accounts in error as 891.
Jan 22. Cash paid to G Boyd 64 entered on the debit side of the cash book and the credit side of
G Boyds account.
Jan 23 .A sale of fittings 320 had been entered in the Sales account.
Jan 24 .Cash withdrawn from bank for business use of 200 had been entered in the cash column on
the credit side of the cash book, and in the bank column on the debit side.
Jan 25. Purchase of goods 1,182 has been entered in error in the Furnishings account.
Jan 26. The purchase of a new van for 6,000 was included in the motor vehicle expenses account.
Jan 27. The drawings account included 250 for the purchase of fuel which was used to heat the
business offices.
Jan 28. 300 paid by a customer, B Burton Ltd, had been credited to B Strutons account in error.
Jan 29. The water rates on the proprietors private house, 750, has been paid correctly and
debited to the business rent account.
Jan 30 720 included in the wages account was included in the motor expense account.
Date

Details

Dr.

Cr.

Correcting Errors | 3

Exercise sum # 3 (errors affecting trial balance)

Show the journal entries with narrations necessary to correct the following errors:
Feb1.The sales day book had been undercast by 10.
Feb2 .A customers personal account has been correctly credited with 2 discount, but no
corresponding
entry was made in the discount column of the cash book.
Feb3 .Discounts allowed for July, amounting to 70 were credited to discount received account
instead of being debited to the discount account.
Feb4. A debit balance on the account of D Bird, a customer, was undercasted by 10 .
Feb 5 Return outward account has been overcasted by 25
Date

Details

Dr.

Cr.

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Prepare a Suspense account using items from Feb1 Feb5.

SUSPENSE A/C
Date

Details

Date

Details

Q. Which side of the trial balance has a deficit ? By how much ?

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Q.Show the effect on trial balance and net profit the transactions from Feb1 Feb-5
caused.

Date

effect on trial balance

effect on net profit

Exercise sum #4 (mixed)

Show the journal entries with narrations necessary to correct the following errors:
Feb 6 Discounts allowed during March amounting to 62 were posted to the credit of the discounts
received account.
Feb 7 The sales day book was overcast by 100.
Feb 8 Goods bought on credit from A Supplier for 5 had been posted to his account as 50.
Feb 9 S Kane, a customer, returned goods valued at 10. This had been entered in the sales returns
account and posted to the debit of the customers account.
Feb 10 The sale on credit of various items of plant and machinery at their book value of 300 had
been recorded in the sales account.
Feb 11 An item of cash discount allowed 2 had been correctly entered in the discount allowed
account but had not been posted to the account of B Luckwood, the customer.
Feb 12 A new machine costing 70 had been posted to the debit of the repairs to machinery
account.
Feb 13 A credit note for 179 received from a supplier had been posted to the wrong side of his
account.

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Feb 14 A cheque for 1,500, being rent received from Atlas Ltd, had only been entered in the cash
book.
Date

Details

Dr.

Cr.

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Prepare a Suspense account using items from Feb6 Feb-14.

SUSPENSE A/C
Date

Details

Date

Details

Q. Which side of the trial balance has a deficit ? By how much ?

Q.Show the effect on trial balance and net profit the transactions from Feb6 Feb-14
caused.
Date
Feb.6

effect on trial balance

Credit side exceeds debit by

124

effect on net profit

Higher than it should be by
124

Correcting Errors | 8

Sample assessment paper problem

In the year ended 31 December 2007, the bookkeeper of Sanchez Palmer, wholesaler, made the
following errors.
(i)An invoice for 460 in respect of goods sold to B Ballearic, a supplier, was lost and no entries
made in the books.
(ii) The book-keeper intended to record a bad debt recovered, 500. He debited 500 to the cash
account and credited 50 to the bad debts recovered account.
(iii) On 1 July 2007, an insurance premium of 1 200 for the following 12 months was paid; no
adjustment was made for the amount paid in advance at 31 December 2007.
(iv) The total of the returns inward book was over-cast by 200.
(v) The total of the discount allowed column in the cash book, 150, was posted to the credit side of
the discount received account.
(vi) A cheque for 195 received from T Tramuntana on 24 April 2007, in full settlement of her
account, was entered correctly. No cash discount was involved. The cheque was dishonoured on 12
May 2007, but no entry for this was made in the books.
(a) You are asked to show the effect of each error on:
the agreement of the trial balance
the net profit for the year ended 31 December 2007.
Complete the table below for each of the items (iii) to (vi). The answers to (i) and (ii) have been done
to show the layout.
Items

Trial balance

Net profit

(i)

No effect

(ii)

Debit side bigger by 450

Lower than it should be by

460
Lower than it should be by
450

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****Prepare a Suspense account using items for items (I) to (vi)

SUSPENSE A/C
Date

Details

Date

Details

Q. Which side of the trial balance has a deficit ? By how much ?what is the balance on
suspense a/c?

Other sums to follow IGCSE - June 09,May11,June12

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GCE - Jan08,May05

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