Question

2(a) List four items each that are found on the: (i) Credit side of the sales ledger control account; (ii) Debit side of the purchase ledger control account
(b) List seven types of errors at trial balance will not reveal

Accepted Answer

(a)(i) Items found on the credit side of sales ledger control account:
- Cash received from debtors
- Cheques received from debtors
- Bad debts
- Discount allowed

(ii) Items found on the debit side of purchases ledger control account:
- Discount received
- Cash paid to supplier
- Goods return to supplier
- Bills payable

(b) Errors not affecting trial balance:
i. Errors of compensation
ii. Error of original entry
iii. Error of principle
iv. Error of reversal of entry
v. Error of commission
vi. Error of omission
vii. Transposition error

WAEC Accounting 2016 Theory — Question 2

Sign up free to unlock