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

 

 

 

 

 

 

 

CHAPTER ROUNDUP 

QUICK QUIZ

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CHAPTER 16  

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  CORRECTION OF ERRORS 

 

287 

1 

Transposition, omission, principle, commission and compensating errors 

2 

D 

Although A, B and C are correct as far as they go, they don't cover everything. D is the most 

comprehensive answer. 

3 True 

4 

B 

All errors must be identified and the suspense account cleared to nil. 

5 

C 

The sales returns of $460 have been credited to accounts receivable and also $460 has been 

credited to purchase returns. Therefore the trial balance needs a debit of 2  $460 = $920  

to balance. 

 

 

 

 

 

 

 

Now try ... 

 

Attempt the questions below from the Practice Question Bank 

 

Qs 64 – 66 

 

 

 

 

 

 

 

 

 

 

 

ANSWERS TO QUICK QUIZ 

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PART E: PREPARING A TRIAL BALANCE 

 

288

 

 

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289 

 

 

Preparing basic financial

statements

part

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PART F: PREPARING BASIC FINANCIAL STATEMENTS 

 

290

 

 

 

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291 

C H A P T E R 

 

 

TOPIC LIST 

SYLLABUS 

REFERENCE 

1  Incomplete records questions  

F6(a)

2  The accounting and business equations 

F6(a)

3  Credit sales and trade receivables 

F6(a)

4  Purchases and trade payables 

F6(a)

5  Establishing cost of sales 

F6(a)

6  Stolen goods or goods destroyed 

F6(a)

7  The cash book 

F6(a)

8  Accruals and prepayments 

F6(a)

 

 

Incomplete records

So far we have assumed that sole traders keep a full set of records. 

In practice, many sole traders do not keep a complete set of 

records and you must apply certain techniques to arrive at the 

figures that are missing. 

Incomplete records questions are a very good test of your 

understanding of the way in which a set of accounts is built up. 

In most countries, limited liability companies are obliged by 

national laws to keep proper accounting records. 

 

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