2. Recording Financial Transactions

Correction Of Errors — Quiz

Test your understanding of correction of errors with 5 practice questions.

Practice Questions

Question 1

A business purchased goods for $$ \$600 $$ on credit. The entry was correctly made in the Purchases account but was posted to the supplier's account as $$ \$60 $$. What is the amount of the difference that would appear in the suspense account?

Question 2

An error where a transaction is recorded in the wrong personal account but within the correct class of account (e.g., a sale to customer A is recorded in customer B's account) is known as an:

Question 3

A business paid $$ \$1,500 $$ for the installation of new machinery. This was debited to the Repairs and Maintenance account. Which type of error is this?

Question 4

A credit sale of $$ \$500 $$ to C. White was correctly entered in the sales journal but posted to the credit of C. White's account. Which of the following journal entries would correct this error?

Question 5

Which of the following errors would cause the debit side of the trial balance to be $$ \$200 $$ more than the credit side?