Identify errors in entries
1
1. Goods sold on credit to H Lin for $6,780 were recorded in H Lui's account.
2
A machine purchased on credit from L. Po for $43,900 was omitted from the books.
3
A van purchased for $38,000 was entered in the motor expenses account.
4
Goods sold on credit to C Fung for $2,210 were recorded in the sales journal as $2,120.
5
Both the purchases account and the sales account were overstated by $100.
6
A cash payment of $8,000 to H Kwong was entered on the debit side of the cash book and the credit side of H Kwong's account.
7
A credit purchase of $6,990 from K Wong was recorded in H Wong's account.
8
A cheque of $1,890 for advertisement payment was entered in the cash column of the cash book.
9
Repairs to the owner's car costing $1,200 were recorded in the motor vehicles account.
10
Cash of $1,200 withdrawn from the bank for business use was debited to the bank account and credited to the cash account.
11
A credit purchase of $8,900 from K Li was recorded in the purchases journal as $9,900.
12
Cash of $10,000 deposited into the business bank account by the owner was not recorded in the books.
13
A debit note of $1,060 sent to D Mok, a trade creditor, was recorded in the returns outwards journal as $1,600.
Choose one or more answers
14
Both the returns inwards account and the returns outwards account were understated by $800.
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15
A machine acquired at $20,000 with a zero net book value was sold for $2,000 cash. This was recorded as a cash sale of $2,000.
Choose one or more answers
16
Interest of $6,000 received on a time deposit was debited to the bank charges account and credited to the bank account.
Choose one or more answers
Feedback
Error of commission (incorrect account of the same type)
Dr H Lin 6,780;
Cr H Lui 6,780
Error of omission (no entry has been made)
Dr Machinery 43,900;
Cr L. Po 43,900
Error of principle (wrong type of account)
Dr Motor Vehicles 38,000;
Cr Motor Expenses 38,000
Error of original entry (incorrect amount)
Difference = $90
Dr C Fung 90;
Cr Sales 90
Compensating errors (two errors cancel each other out)
Dr Sales 100;
Cr Purchases 100
Error of complete reversal of entries (wrong sides)
Dr H Kwong 16,000 ( 8000 x2);
Cr Cash 16,000
Error of commission (incorrect account of the same type)
Dr H Wong 6,990;
Cr K Wong 6,990
Error of omission (credit entry in cash omitted),
Dr Suspense Account 1,890;
Cr Cash 1,890
Error of principle (wrong type of account)
Dr Repairs Expense 1,200;
Cr Motor Vehicles 1,200
Error of complete reversal of entries (wrong sides)
Dr Cash 2,400;
Cr Bank 2,400
Error of original entry (incorrect amount)
Overstated by $1,000
Dr K Li 1,000;
Cr Purchases 1,000
Error of omission (no entry has been made)
Dr Bank 10,000;
Cr Capital 10,000
Error of original entry (incorrect amount)
Difference = $540
Dr D Mok 540;
Cr Returns Outwards 540
Compensating errors (two errors cancel each other out)
Dr Returns Inwards 800;
Cr Returns Outwards 800
Error of principle (wrong type of account.)
Dr Sales 2,000
Dr Accumulated Depreciation 20,000;
Cr Machinery 20,000
Cr Gain on Disposal 2,000
Error of complete reversal of entries (wrong sides)
Dr Bank 12,000;
Cr Bank Charges 6,000
Cr Interest Income 6,000
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