Question

Question 2. For each of the following transactions, state the type of error and its effect on the trial balance:
a. Purchase of consumables posted to purchases account
b. An invoice amount was incorrectly posted to purchase day book
c. Returns outwards posted to the personal account only
d. Total sales of #120,000 was recorded as #102,000
e. Payment of cheques to Ige entered on the receipt side of the cash book

Accepted Answer

a. Error of principle - the trial balance would still agree.
b. Error of principle - the trial balance would still agree.
c. One-sided omission - the trial balance would not agree.
d. Error in the original entry - the trial balance would still agree.
e. Error of complete reversal of entries - the trial balance would still agree.

NECO Accounting 2024 Theory — Question 4

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