WAEC Financial Accounting 2023 Theory question 102

Theory question 102

Correction of Errors and Suspense Account

Identify the errors in the following transactions and state if they would affect the agreement of the trial balance totals:
(a) Purchase of consumables posted to purchases account:
(b) An invoice amount incorrectly posted to purchases day book.
(c) Returns outwards posted to the personal account only;
(d) The total sales of ₦120,000 was recorded as ₦102,000;
(e) Payment of cheque to Ige entered on the receipt side of the cash book and credited to Ige's account.

Show the model answer
Model answer

(a) Error of principle – does not affect the trial balance.
(b) Error of original entry – does not affect the trial balance.
(c) Error of single entry (partial omission) – affects the trial balance.
(d) Undercasting (casting error) of the sales total – affects the trial balance.
(e) Error of complete reversal of entries – does not affect the trial balance.

Explanation

Name each error, then say whether debits still equal credits.