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    IGCSE Accounting Practice Questions

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    The document describes correcting errors in journal entries by making adjusting entries through a suspense account, including entries to correct undercast purchases, overcredited sales, and wrongly credited expenses. It also shows the effect on the financial statements and balance sheet.

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    IGCSE Accounting Practice Questions

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    Hi
    15 views2 pages
    The document describes correcting errors in journal entries by making adjusting entries through a suspense account, including entries to correct undercast purchases, overcredited sales, and wrongly credited expenses. It also shows the effect on the financial statements and balance sheet.

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    The document describes correcting errors in journal entries by making adjusting entries through a suspense account, including entries to correct undercast purchases, overcredited sales, and wrongly credited expenses. It also shows the effect on the financial statements and balance sheet.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    15 views2 pages

    IGCSE Accounting Practice Questions

    Uploaded by

    Hi
    The document describes correcting errors in journal entries by making adjusting entries through a suspense account, including entries to correct undercast purchases, overcredited sales, and wrongly credited expenses. It also shows the effect on the financial statements and balance sheet.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    CHP 3.

    2 CORRECTION OF ERRORS

    (a) Journal entries


    Dr Cr
    Purchases 220
    Suspense 220
    Purchases journal undercast.

    Sales 630
    Suspense 630
    Sales entered as $700 instead of $70.

    Motor vehicle 1,000


    Capital 1,000
    Value of car brought into the business by
    Ander.

    Office expenses 462


    Suspense 462
    Office expenses wrongly credited to
    account.

    (b) Suspense account


    Date Details $ Date Details $
    Balance b/d 1,312 Purchases 220
    Sales 630
    Office expenses 462
    1,312 1,312

    (c) Statement of corrected profit

    $ $
    Profit before adjustments 2,114

    Adjustments:
    Purchases undercast -220
    Sales overcredited -630
    Office expense wrongly credited -462
    -1,312
    Profit after adjustments 802

    (d) Effect on the assets in the statement of financial positon after the errors
    have been corrected:
    Non-current assets
    Motor vehicle – car increased by $1,000

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