Correction of errors
Correcting an error means identifying what was recorded, comparing it with the correct entry and posting only the adjustment needed. Some errors affect trial balance agreement and may involve suspense; others leave debits and credits equal. Errors discovered before finalising the current accounts are corrected in the relevant accounts. Material prior-period errors have separate retrospective correction requirements.
Worked example
A $600 repair was debited to equipment. Correct it by debiting repairs expense and crediting equipment $600.
Common mistake
Do not automatically use suspense: an error between two debit accounts leaves trial balance totals equal.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | F1 | Direct | July 2027–August 2028 |
| ACCA | FA | Direct | September 2026–June 2027 |
| ACCA | K1 | Direct | July 2027–August 2028 |
| CIMA | BA3 | Direct | Official assessment-window verification pending |
| FIA | FFA | Direct | September 2026–June 2027 |