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WAEC Financial Accounting 2016 Question 8

Question 8

Correction of Errors and Suspense Account

Cash paid to Jake, N2,500, was entered on the credit side of his account and debited to cash account. This is an error of

  1. A.Principle.
  2. B.Commission.
  3. C.Complete reversal of entries.
  4. D.Original entry.
Show the answer and explanation

Answer: C (Complete reversal of entries.)

Explanation

The correct accounts and amount were used but each entry is on the wrong side: a complete reversal of entries.