Section A: Theory of Financial Accounting
Question 2
(a) List four items each that are found on the
(i) credit side of the sales ledger control account;
(ii) debit side of the purchases ledger control account.
(b) List seven types of errors a trial balance will not reveal.
Observation
Majority of the candidates attempted this question and their performance was good. However, few candidates included errors that affect the trial balance. The expected answer to 2(b) included:
- Error of omission;
- Error of commission;
- Error of principle;
- Error of original entry;
- Complete reversal of entries;
- Error of transposition;
- Compensating error;
- Error of duplication.