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The journal:
The journal In order to complete the correction of the error, a journal entry must be made. The journal entry makes it
possible to understand why the entries were made in the double entry.
Steps in making journal entry:
Steps in making journal entry Enter the account in which the debit entry was made Indent and enter the account in
which the credit entry was made Write a short description (Narrative) of what is being done
The Journal :
The Journal Date Details Debit Credit 2012 $ $ Feb 31 Suspense 40 Sales 40 Correction of understated sales in the
previous year. A /C in which Dr entry was made Indent for A/C in which credit entry was made Narrative
PowerPoint Presentation:
ASSESSMENT
Instruction:
Instruction Click on a monetary value in the game board and answer the question. If the question is correct, you will
be awarded the money. If the answer is incorrect you will suffer the loss. BEGIN
ERRORS JEPORDY GAME :
ERRORS JEPORDY GAME 100 200 300 400 500 100 200 300 400 500 100 200 300 400 500
9. True / false?:
9. True / false? The income statement and balance can still be prepared even in the trial balance totals do not agree.
True False
10. True / False:
10. True / False The difference between trial balance totals should be entered in the trial balance as suspense on the
side with the larger total. False True
10. True / False:
10. True / False The suspense account must reflect the total of the smaller side of the trial balance. False True
1. What does the word overcast means in accounts?:
1. What does the word overcast means in accounts? About to rain B. Dark C. Too much D. All of the above
1. What does the word Undercast means in accounts?:
1. What does the word Undercast means in accounts? Printed B. Buried D. All of the above C. Too little
1.Which of the following best describe the suspense account?:
1.Which of the following best describe the suspense account? A. An account in which you can enter the amount equal
to the difference on the trial balance B. An account in which you can enter the amount equal to the difference on the
balance sheet C . An account in which you can enter the amount equal to the difference on the journal D. All of the
above
5. Which of the following errors will affect the trial balance?:
5. Which of the following errors will affect the trial balance? Error of principles B. Error of compensation C. Single
entry D. Error of original entry
5. Which of the following errors will NOT affect the trial balance?:
5. Which of the following errors will NOT affect the trial balance? Error of principles B. Single entry C. Overcast D.
Undercast
6. Where are the balances in a trial balance taken from?:
6. Where are the balances in a trial balance taken from? Ledgers B. Balance sheet C. Invoice D. All of the above
4. If a trial balance CR total is greater than its DR total which account is opened to reflect
the difference?:
4. If a trial balance CR total is greater than its DR total which account is opened to reflect the difference? Suspense
a/c B. Sales a/c C. Commission a/c D. Profit/loss a/c
If the sales account is Undercast by $20 which of the transactions would correct the error?:
If the sales account is Undercast by $20 which of the transactions would correct the error? DR-Sales & CRSuspense($20) DR-Sales & CR-Cash($20) CR-Sales & DR- Cash($20) CR-Sales & DR- Suspense($20)
3. All of the following errors would be corrected through suspense a/c EXCEPT?:
3. All of the following errors would be corrected through suspense a/c EXCEPT? Sales a/c overcast by $56 B. Both
the purchases and the sales a/c were added up to be $54 too much C. Rent paid by cash was not entered in the cash
a/c D. Purchases was Undercast by $89
7. How do I increase an account that is always credit?:
7. How do I increase an account that is always credit? By doing a debit to the a/c B. By doing both a debit & a credit
to the a/c C. By doing a credit to the a/c D. None of the above
7. How do I increase an account that is always debited?:
7. How do I increase an account that is always debited? By doing a debit to the a/c B. By doing both a debit & a credit
to the a/c C. By doing a credit to the a/c D. None of the above
8. If the smaller total of a trial balance falls on the DR side, which side of the suspense a/c
should the difference be entered?:
8. If the smaller total of a trial balance falls on the DR side, which side of the suspense a/c should the difference be
entered? Credit side B. Both sides C. No sides D. Debit side