Question

Please answer the following question(s): You will need to perform research to answer one of the following questions. You must cite at least two sources. 1. Describe the procedures for correcting errors in accounting records. Provide an example. 2. How is the trial balance used to discover errors? Provide an example. 3. How would you find errors in recording transactions and what is the process to correct errors? Provide an example. Search entries or author Unread Reply Replies are only visible to those who have posted at least one reply. Next > Previous

Answer 1

Requirement - Answer one of the following question

please see Answr for QNo 3 - Trial Balance preparation is one of teh most important step to capture all accounting transaction .

We nornally aware that " Suspense " account to detect all errors that cause discrepancies between Debti and credit balance of teh Trial Balance .

Whle accounting purchase and sales journal entry , chances of accoutning error is possible . Differetnt types of error are connected with transaction : like

Cimmitted Error - when comouting or posting of journal entries , computation error - when figures are added or substracted incorrectly .

Posting error happen whentrasfering of journal entries to wrong accont

We need to consider following step :

Adjustment of computation of error - Assume a difference of $ 500 accounted by incorrect additin to figures is credited in the suspense account , a similar amount is debited to the account

Correction of posting error - Any error occured as a result of posting an entry in the wrong side of the books of accounts then other side a double amoutn to be posted toreverse the entry and post it correctly

Finally prepared Adjusted Trial Balance - error will be rectified when suspense account is balanced. Adjustment journal enttry to be posted to eleminate the detected errors