I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

PART E: PREPARING A TRIAL BALANCE 

 

274

 

1 

D 

Contra entries only occur between the receivables and payables control account. 

2 

False. In very small businesses, with few transactions, the cash book and bank statement could well 

agree. 

3 

D 

 

 

$   

$      

 

 

Balance per bank statement 

 

1,200 

  Add: 

outstanding 

lodgements 

500 

 

 

 

deposit interest not yet credited 

    50 

    

 

 

 

 

 

     550 

   

 

  1,750 

  Less: 

unpresented 

cheques 

  

(1,250) 

 

 

Balance per cash book 

 

     500 

4 Bank 

reconciliation 

5 

It highlights errors and omissions in the cash book and helps to prevent fraud. It also checks the bank 

figure and helps to spot any bank errors. 

 

 

 

 

Now try ... 

 

Attempt the questions below from the Practice Question Bank 

 

Qs 60 – 63 

 

 

 

 

 

 

 

 

 

 

 

 

 

ANSWERS TO QUICK QUIZ 

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275 

C H A P T E R 

 

 

TOPIC LIST 

SYLLABUS 

REFERENCE 

1  Types of error in accounting  

E2(a),(b)

2  The correction of errors 

E2(c)–(d), E5(a)–(d), E2(d)

 

 

 

Correction of errors

This chapter continues the subject of errors in accounts. You have 

already learned about errors which arise in the context of the cash 

book or the receivables and payables ledgers and control accounts.

Here we deal with errors that may be corrected by means of the 

journal or a suspense account.  

By the end of this chapter you should be able to prepare a set of 

final accounts for a sole trader from a trial balance after 

incorporating adjustments to profits for errors. 

 

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