ICAEW AF · Chapter 7 · Question 2 of 12
A purchase invoice from Hartley Ltd was correctly recorded in the purchases day book but posted to the payables ledger account of Hart Ltd. What type of error is this?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) An error of commission
Explanation
An error of commission occurs when an entry is made in the correct type of account but in the wrong individual account. Both Hart Ltd and Hartley Ltd are supplier accounts, so the classification is right but the account is wrong. The trial balance still agrees because the debit and credit are equal.
More Errors, suspense accounts and correcting journals MCQs
- Q4An electricity bill of £370 was paid and debited to the rent account. What journal is needed to correct the error?
- Q5Cash sales of £5,630 were correctly entered in the cash book but credited to the revenue account as £5,360. What journal corrects this…
- Q6A business opened a suspense account when its trial balance did not agree. The following errors were then found, and correcting them…
- Q7A sole trader's draft profit for the year is £64,800. The following matters have not yet been reflected: 1. Closing inventory was…
- Q8Which of the following errors would require an entry to the suspense account when it is corrected?