AQA Accounting (ACCN1) - 2014

Ah i get it now thanks so much

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On 30 April 2004 the owner of China Products prepared a trial balance. The trial balance totals did
not agree. A suspense account was opened.

The following errors have been discovered.

(1) The sales account had been overcast by £200.
(2) A purchase invoice for £500 had been entered in both the supplier’s account and the purchases
account as £50.
(3) Rent paid of £650 had been correctly entered in the cash book, but had been entered in the rent
account as £400.

REQUIRED

(a) Make appropriate entries in the suspense account. Show the opening balance.

HOW DO I DO THIS SOMEONE HEEEELLLLLLPPPPPPPPPPPPPP

Does it tell you the trial balance difference in the question?

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nopee

im pretty sure suspense and journals will be coming up! ;D

I THINK you have to DR sales account £200 so CR suspense £200 because it's undercast
The second one is an error of original entry so you don't use the suspense account
The third one you have to DR rent account by £250 so CR suspense by £250, it's an error of unequal entry

So the total CR on suspense is £450
Then on the debit side you write trial balance difference £450 so that it balances? Not sure

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Or bank rec and control accounts?! Basically anything

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omg thanksssssssssssss

best thing to do is be prepared for EVERYTHINGGG!!

No worries...remember it like this, CROPOC and PUPAT
CROPOC errors are not revealed by the trial balance and PUPAT errors ARE revealed. For PUPAT errors you need to open a suspense account.
Commission - correct amount, correct side, wrong account
Reversal - correct amount, correct account, wrong side (dr and cr swapped)
Omission - the entry has been left out COMPLETELY
Principle - correct side but wrong TYPE of account like treating capital expenditure as revenue expenditure
Original entry - correct side, correct accounts, but the WRONG figure on BOTH accounts
Compensating - any errors that cancel each other out and do not fall in any of the above categories


Posting - Two DRs or two CRs entered
Unequal entry - the number wrong like 22 instead of 16
Partial omission - only entered one side, missed the other. Like one credit or one debit only
Addition - not added totals of accounts correctly
Transposition - when the digits of the figure are swapped e.g 157 instead of 175

So only for errors that fall in the PUPAT category you need to open a suspense account

If they ask you to do journal entries as well, you have to write the error so it's useful learning them all in the CROPOC and PUPAT way lol
Also if the ask for the usefulness of a trial balance, you can explain that the trial balance only reveals PUPAT errors and not CROPOC, then explain some of the errors

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thanks, and bdw i still dont get the diff between unequal entry and transposition can u explain plz they look the same to me

Unequal entry is just when the number is completely wrong and different to the correct number like how 12 and 38 are two different numbers none of the digits are the same
Transposition is when the digits are SWAPPED so 12 and 21

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ohhhhhhhhhhh im soooo dumb ,thanksssssss for tht

Lool no problem

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