The Trial Balance & Correction of Errors — Structured Questions (Cambridge International IGCSE Accounting): Exam Questions

State two reasons for preparing a trial balance.

Wasim is a trader. His financial year ends on 31 March.

The totals of his trial balance on 31 March 2017 did not agree. The difference was a shortage on the debit side of $495. This was entered in a suspense account.

The following errors were later discovered.

1. The total of a page of the purchases account, $3842, had been carried forward as $3824.
2. A cheque received from DEC Limited, $150, had been credited to the account of DDE Limited.
3. The balance of the petty cash book, $100, had been omitted from the trial balance.
4. Repairs to a motor vehicle, $283, had been debited to the motor vehicles account.
5. Purchase of fixtures, $2000, on credit from OS Supplies had been debited to OS Supplies and credited to fixtures account.
6. The total of the discount allowed column in the cash book, $250, had been credited to the discount received account in the ledger.
7. The total of the analysis column for stationery in the petty cash book, $67, had not been transferred to the stationery account in the ledger.

REQUIRED

Prepare the suspense account. Start with the balance arising from the difference on the trial balance. The account should be balanced or totalled as necessary.

Wasim Suspense account

Prepare journal entries to correct two of the errors which do not require correcting by means of the suspense account. Narratives are required.

Wasim Journal

Identify the type of error made in Error 2.

Wasim prepared draft financial statements for the year.

REQUIRED

Complete the following table by placing a tick (✓) in the correct column to indicate whether the profit for the year would be affected by each of the errors. Ignore depreciation of non-current assets.

The first one has been completed as an example.

Nabila is a trader. Her financial year ends on 30 September.

The trial balance totals at 30 September 2025 did not agree. The total of the debit balances was $108 more than the total of the credit balances. The difference was placed in a suspense account.

The following errors were later discovered.

1. An electricity payment $78, by direct debit, was not recorded.
2. A cheque $246 received from K. Patel was correctly entered in the cash book, but was credited to the account of N. Patel.
3. Drawings $360 from the business bank account had been debited to wages.
4. A contra entry $190 to set off mutual balances between Nabila and Jazeem was only recorded in the sales ledger.
5. Discount received column total $84 in the cash book was debited to discount allowed in the ledger.
6. The sales returns journal for September was overcast by $220.
7. A purchase of office equipment $1 540 on credit from ByteTech Ltd was entered into the office equipment account as $1 450.

REQUIRED

Prepare journal entries to correct Error 1 and Error 2. Narratives are required.

Identify the type of error made in Error 3.

Prepare the suspense account, including the original difference on the trial balance.

Nabila Suspense account

Complete the following table by placing a tick (✓) to show the effect of each error. The first one has been completed as an example.

Ignore depreciation of non-current assets.

Ramla has calculated her draft profit figure for the year ended 28 February 2023. Adjustments in Ramla’s ledger accounts have still to be made for the following items

1. An amount of $99 owed to Ramla by Mai is to be written off as irrecoverable.
2. Fixtures and fittings, $875, were purchased on credit from Padma.
3. A loan repayment, $500, had been incorrectly recorded as loan interest.
4. Rent paid, $350, had been recorded as $530.
5. Drawings, $120, had been debited to the wages account

REQUIRED

Prepare the journal entries required for items 1–5. Narratives are not required.

Ramla Journal

Complete the following table by entering the amount of each adjustment required to calculate Ramla’s adjusted profit. If an item has no effect on profit, enter zero (0) in the ‘no effect on profit’ box.

Eshe is a trader. She has prepared a trial balance at 31 March 2023. The totals did not agree and the difference was placed in a suspense account.

Eshe later discovered the errors shown in the following table.

REQUIRED

Complete the table to show the entries required to correct each error. The first one has been completed as an example.

Prepare the suspense account. Include the balancing figure as the original difference on the trial balance.

Eshe Suspense account

Eshe’s capital at 1 April 2022 was $31000. Her draft profit for the year ended 31 March 2023 before correction of the errors was $15600.

REQUIRED

Calculate Eshe’s capital at 31 March 2023 after the errors have been corrected.

Amadi prepared the following trial balance which is not yet totalled and contains errors.

Amadi Trial balance at 31 March 2023

REQUIRED

Prepare a corrected trial balance at 31 March 2023. Show the remaining difference between the debit and credit totals as ‘suspense.’

Amadi Corrected Trial Balance at 31 March 2023

Amadi then discovered the following errors.

1. The general expenses account had been undercast by $200.
2. A rent payment, $516, had been posted to the rent and rates account as $615.
3. The total for discount received in the cash book for February 2023, $165, had been debited to the drawings account. No other entry for this total had been made.

REQUIRED

Prepare the suspense account.

Amadi Suspense account

Rachel is a trader. The totals of Rachel’s trial balance prepared on 30 September 2023 did not agree and the difference was placed in a suspense account.

Rachel later discovered the errors shown in the following table.

REQUIRED

Complete the following table to show the entries required to correct each error. The first one has been completed as an example.

Prepare the suspense account. Include the balancing figure as the original difference on the trial balance.

Rachel Suspense account

Rachel’s draft profit before the errors were discovered was $18 243.

REQUIRED

Calculate Rachel’s profit for the year ended 30 September 2023 after the errors in the table have been corrected.

Asia is a trader. She prepared her trial balance at 31 August 2023. The credit side totalled $273 more than the debit side. Asia placed the difference in a suspense account.

Asia later discovered the following errors.

1. A credit purchase, $112, from Jacques, had been entered twice in the purchases journal.
2. The wages account had been overcast by $300.
3. Cash received, $75, from Savanah, a trade receivable, had only been entered in the cash book.
4. The total of the sales returns journal for August 2023 of $198, had been credited to both the sales returns account and the purchases returns account.
5. A payment to Sophie, $93, had been recorded as $39 in Sophie’s account.

REQUIRED

Prepare the journal entries to correct errors 1–5. Narratives are not required.

Asia Journal

Prepare the suspense account, including the original difference on the trial balance

Asia Suspense account

Complete the following table by placing a tick (✓) to show the effect of each error. The first one has been completed as an example.