Trial Balance and Errors
GCE Financial Accounting

(a) Define a Trial Balance and state TWO purposes it serves in the accounting process. (4 marks) (b) The following balances were extracted from the books of Adaeze Traders as at 31 March 2024: Capit…

(a) Explain FOUR types of errors that do NOT affect the agreement of a Trial Balance. (8 marks) (b) The Trial Balance of Obiora Enterprises failed to agree. The accountant placed the difference of N4…

Adamu's trial balance showed a difference of ₦4,200, which was placed in a suspense account. It was later discovered that the sales day book had been undercast by ₦4,200. The correcting journal entry …

The following errors were found after a trial balance was extracted. Which one is an error of principle?

Ngozi extracted a trial balance which failed to agree by ₦900. The debit side exceeded the credit side. Investigation revealed that a credit sale of ₦1,800 to Bello had been correctly entered in the s…

Which of the following errors will cause the trial balance to disagree?

The following errors were discovered after the preparation of a trial balance. Which TWO errors would cancel each other out? I. The purchases day book was overcast by ₦2,000 II. A payment of ₦2,00…

Eze and Sons extracted a trial balance as at 31 December 2023. The following errors were later discovered: (i) Salaries of ₦15,000 had been debited to the wages account (ii) A credit sale of ₦9,00…

After correcting all errors, the net profit of a business was adjusted from ₦120,000 to ₦114,500. Which combination of errors below could account for this reduction in net profit?

A trial balance totals ₦850,000 on the debit side and ₦843,500 on the credit side. The difference is entered in a suspense account. Which of the following shows the correct suspense account entry?

An error where a transaction is recorded in the correct accounts but with the wrong amount on both sides is known as error of