Control accounts, Errors, and Suspense accounts Flashcards Preview

Accounting > Control accounts, Errors, and Suspense accounts > Flashcards

Flashcards in Control accounts, Errors, and Suspense accounts Deck (10):
1

Receivables Control Account

A nominal ledger account in which records are kept of transactions involving all receivables in total.

2

Payables Control Account

A nominal ledger in which records are kept of transactions involving all payables in total.

3

Unpresented cheques

Cheques paid OUT by the business and not yet presented to the bank

4

Uncleared lodgements

Cheques paid IN to the business, which have not yet been entered into the bank

5

Transposition error

When two digits are recorded the wrong way round

6

Error of omission

Failing to record one or both sides of a transaction

7

Error of principle

Making a correctly valued double entry into the conceptually incorrect accounts

8

Error of commission

Entering an incorrect value into the correct account

9

Compensating error

Errors which are equal and opposite to one another

10

Suspense account

An account showing a balance equal to the difference in a TB