• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for March and June 2025 exams.
Get your discount code >>

help with correction of error

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › help with correction of error

  • This topic has 1 reply, 2 voices, and was last updated 3 years ago by deadsec95.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • October 8, 2021 at 2:44 pm #637260
    jcafelatte
    Member
    • Topics: 14
    • Replies: 8
    • ☆

    a company trial balance failed to agree totals being:
    debit 815602
    credit 808420

    which one of the follwing errors could fully account for the difference ?

    A. the omission from the trial balance of the balance on the insurance expense account $7182 debit
    B. settlement discount received from supplier of $3591 were credited in error to the purchases account
    C. no entries made in the records for cash sales totalling $7182
    D. return outwards total of $ 3591 was included in trial balance as a debit balance

    i have watched your free lectures but need some help please.can you explain each point and the double entries. thank you.

    October 8, 2021 at 10:02 pm #637273
    deadsec95
    Participant
    • Topics: 5
    • Replies: 3
    • ☆

    Sorry sir I answered, I knew the answer, so I replied
    Firstly deduct the difference of trial balance, which gives us value of 7182 less in credit or more in debit. now there can be 2 possibilities either an error has increased the debit balance or decreased the credit balance.
    A. the omission of insurance exp in debit by 7182, if corrected would increase the debit side even further, doubling the difference.
    B. the settlement discount received and purchase account are interchanged the values entered and credited are right just the account is wrong, so any movement from one to other won’t have any effect on trial balance.
    C. cash sales of 7182 is an error of omission it would debit the cash and credit the sales but won’t effect the difference.
    D. NOW D IS THE RIGHT ANSWER. return outward is the opposite of purchase, meaning when you buy goods you debit them and when they are returned to supplier they are credited. while the amount of 3591 was debited instead of being credited, so firstly to correct, remove the debit the amount by crediting with 3591 then to add the real returns the account will be credited with 3591 again. making trial balance balancing at 812011 debit credit both.
    while these entries will be setoff by the debit in suspense account.
    I hop you understood.

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • The topic ‘help with correction of error’ is closed to new replies.

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • Bainamura on The Statement of Financial Position – ACCA Financial Accounting (FA) lectures
  • kadamova.f@gmail.com on Associates (IAS 28) – PUPs – ACCA Financial Reporting (FR)
  • kadamova.f@gmail.com on Associates (IAS 28) – PUPs – ACCA Financial Reporting (FR)
  • bpop on Risk and uncertainty (part 2) – ACCA (AFM) lectures
  • kamo7293 on Financial performance – Example 2 – ACCA Financial Reporting (FR)

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in