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Answers to supplementary objective test questions

CHAPTER 8 – ACCOUNTING ERRORS AND SUSPENSE ACCOUNTS

8.1 D

8.2 B and E

8.3 B

CHAPTER 9 – ACCOUNTING RECONCILIATIONS

9.1 C

9.2 D

Items A and B will result in an error in the control account. Item C will result in
an error in the total of individual customer account balances. Item D will not
affect either of the totals, although there are errors in the individual accounts of
the two customers affected, with one account balance too high and the other
too low by the same amount.

9.3 B

Error 1. Total sales and total receivables have been recorded $370 too much.
Credit the receivables ledger control account by $370.

Error 2. Total receivables has been recorded ($940 – $490) $450 too little.
Credit the receivables ledger control account by $450

As a result of these two errors, total receivables have been under-credited by
$820 ($450 + $370).

The errors have not affected the accounts of individual customers.

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