Trial Balance, Errors And Suspense Accounts

Question 1

Which errors will still allow the trial balance to balance?

Answer 1

Error of omission

Error of original entry

Reversal of entries

Errors of principle

Error of commission

Question 2

What is an error of omission?

Answer 2

Both sides of a transaction have been completely left out.

Question 3

What is an error of original entry?

Answer 3

An entry has been made so that debits = credits but the amount entered is incorrect

Question 4

What is a reversal of entries error?

Answer 4

A transaction has been recorded at the correct amount but the debits and the credits are the wrong way around

Question 5

What is an error of principle?

Answer 5

Debits = credits but one of the entries has been posted into the wrong type of account

Question 6

What is an error of commission?

Answer 6

Debits = credits but one of the entries has been made to the wrong account but the correct type of account.

Question 7

What instances which cause an imbalance in the trial balance?

Answer 7

Unequal amounts error

Single entry error

Two debits or two credits

Balance transfer error