Gce Model Questions Vol1 2021 Financial Accounting Question 8

Practice objective / multiple choice question 8 from the 2021 Gce Model Questions Vol1 Financial Accounting examination.

Gce Model Questions Vol1 2021 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 8 GCE_MODEL_QUESTIONS_VOL1 • 2021 • FINANCIAL_ACCOUNTING • objective

In the trial balance the Sales Ledger Control account shows a debit balance of \(£12{,}500\), whereas the total of the individual customer balances amounts to a credit of \(£13{,}200\). No other entries affect the control account. Identify the type of error, explain its effect on the trial balance, and state the correcting entry to be passed.

Answer Options

A. Error: debit entry omitted from Sales Ledger Control (omission). Effect: trial balance out of balance by £700 (credit side short). Correcting entry: Debit Sales Ledger Control £700, Credit Suspense £700
B. Error: credit entry posted twice to Sales Ledger Control (commission). Effect: trial balance out of balance by £700 (debit side short). Correcting entry: Debit Sales Ledger Control £700, Credit Suspense £700
C. Error: omission of debit entry to Sales Ledger Control (omission). Effect: trial balance out of balance by £700 (debit side short). Correcting entry: Debit Suspense £700, Credit Sales Ledger Control £700
Correct Answer D. Error: credit entry omitted from Sales Ledger Control (omission). Effect: trial balance out of balance by £700 (debit side short). Correcting entry: Debit Suspense £700, Credit Sales Ledger Control £700
Correct Answer
D
Correct Option:
Error: credit entry omitted from Sales Ledger Control (omission). Effect: trial balance out of balance by £700 (debit side short). Correcting entry: Debit Suspense £700, Credit Sales Ledger Control £700

About This Question

This is Gce Model Questions Vol1 2021 Financial Accounting Question 8. It is one of the objective questions from the 2021 Gce Model Questions Vol1 Financial Accounting examination.

Difficulty level: Medium .

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