ACCA Applied Knowledge · Financial Accounting · Suspense accounts
A bookkeeper correctly recorded a credit sale of $4,000 to Kemp Ltd in the sales account but, by mistake, posted the receivable debit to the account of Kemp Brothers, another customer. Which type of error is this?
This is an error of commission. The debit was posted to the wrong account within the same category, a receivable account, so the trial balance still balances. It is not an omission, because the entry was made, and not a principle error, because the account type is correct.
- AError of commissionCorrect
- BError of omission
- CError of principle
- DCompensating error
Explanation
The entry was made in the correct class of account (receivables) but posted to the wrong personal account. This is an error of commission. The trial balance still balances because debits equal credits, so no suspense account entry is needed.
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One question tells you little. A timed set on Suspense accounts shows your real accuracy, how long you take and where you lose marks.
More Suspense accounts questions
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- Which one of the following is an error of omission?
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