Detective Accountant
A credit sale to Maya is entered in Naya's account. Both are customers, and the Sales account is correct. Identify the error.
Error of commission.
A transaction is completely omitted. Will the trial balance necessarily show a difference?
No. Neither the debit nor the credit was recorded.
A cash sale of Rp900,000 was completely omitted. Which two accounts should appear in the correcting journal entry?
Debit Cash and credit Sales, both Rp900,000.
A transaction should be Rp780,000 but is entered as Rp870,000 on both sides. By how much is it overstated?
Rp90,000
A transaction is omitted completely, while another transaction is entered into the wrong customer's account. Name both errors.
Error of omission and error of commission.
A business buys a delivery van but records the cost as Motor Expenses. Identify the error and explain the difference between the two accounts.
Error of principle. A delivery van is a non-current asset, while Motor Expenses is a revenue expense.
A machine costing Rp6,000,000 is debited to Machinery correctly, but Bank is credited with only Rp600,000. Calculate the trial balance difference caused by this error.
Rp5,400,000. Debits exceed credits by Rp5,400,000.
Machinery costing Rp4,500,000 was incorrectly debited to Repairs Expense. The credit to Bank was correct. Write the correcting journal entry.
Debit Machinery Rp4,500,000; credit Repairs Expense Rp4,500,000.
A business records an expense of Rp1,850,000 as Rp1,580,000 on both sides. Calculate the understatement.
Rp270,000
A business records a vehicle as an expense and also records the purchase amount incorrectly in both entries. Name the two possible types of error involved.
Error of principle and error of original entry, if the vehicle is classified incorrectly and the same incorrect amount is entered on both sides.
A cash purchase of Rp1,450,000 is entered as Rp1,540,000 in both Purchases and Cash. Identify the error. Why?
Error of original entry. The wrong amount was entered in both accounts.
A business records a transaction in the wrong customer's account, using the correct amount and the correct debit and credit sides. Will the trial balance balance? Explain.
Yes. The wrong personal account is used, but the total debit and credit amounts remain equal.
A credit sale of Rp1,600,000 to Rina was wrongly debited to Dina's account. Sales was credited correctly. Write the correcting journal entry.
Debit Rina Rp1,600,000; credit Dina Rp1,600,000.
A trial balance has debits of Rp16,420,000 and credits of Rp16,070,000. How much must be added to the credit total to make the trial balance agree?
Rp350,000
One error causes debits to be overstated by Rp600,000. Another causes credits to be overstated by Rp600,000. What type of error relationship is this, and will the trial balance still agree if there are no other errors?
Compensating errors. Yes, the two overstatements offset each other, so the trial balance can still agree.
A credit purchase of Rp2,700,000 from Supplier A is debited to Purchases correctly, but Supplier B is credited instead of Supplier A. Identify the error and state which account needs correcting.
Error of commission. Supplier A must be credited and Supplier B debited to transfer the amount to the correct supplier account.
A trial balance has total debits of Rp24,850,000 and total credits of Rp23,970,000. Calculate the difference and state which side is larger.
Rp880,000. The debit side is larger.
A purchase of Rp5,200,000 was recorded as Rp2,500,000 in both Purchases and Trade Payables. Write the journal entry needed to correct the error.
The amount is understated by Rp2,700,000. Debit Purchases Rp2,700,000; credit Trade Payables Rp2,700,000.
A transaction of Rp3,600,000 is entered as Rp3,060,000 in both accounts. Calculate the difference between the correct and recorded amounts, then state the error type.
Rp540,000 understated; error of original entry.
A business records a machine purchase of Rp8,000,000 as Dr Machinery Rp8,000,000 and Cr Bank Rp800,000. Calculate the trial balance difference and identify the error in the recording.
Debits exceed credits by Rp7,200,000. The credit entry is understated; this is a one-sided amount error, not one of the six named errors by itself.
A business records a cash sale by debiting Sales and crediting Cash. The amount is correct. Identify the error and explain why the correction requires twice the original amount in the journal entry.
Complete reversal of entries. Both entries are on the opposite sides, so the correction must cancel the wrong entries and record the correct ones, totalling twice the original amount.
Two independent errors occur. Error A understates debit entries by Rp350,000. Error B understates credit entries by Rp350,000. Will these errors create a trial balance difference? Explain.
No. Both sides are understated by the same amount, so the debit-credit difference is unchanged. This is an example of compensating errors.
A cash sale of Rp1,250,000 was recorded as Dr Sales Rp1,250,000 and Cr Cash Rp1,250,000. Write the correcting journal entry.
Debit Cash Rp2,500,000; credit Sales Rp2,500,000. This reverses the incorrect entries and records the correct entries.
A business has debit entries of Rp32,700,000 and credit entries of Rp31,950,000. It later discovers that a cash expense of Rp250,000 was completely omitted. After correcting the omission, calculate the new debit total, credit total, and trial balance difference.
Correct the omission by debiting the expense Rp250,000 and crediting Cash Rp250,000. New debits = Rp32,950,000; new credits = Rp32,200,000; difference = Rp750,000, with debits larger. The omission increases both totals equally, so the original difference remains Rp750,000.
A business has two errors: a credit sale of Rp1,000,000 is omitted completely, and a separate cash sale of Rp600,000 is completely reversed. Identify both errors, state the correcting journal entry for each, and explain whether either error alone causes a trial balance difference.
The errors are omission and complete reversal. Omission correction: Dr Cash Rp1,000,000; Cr Sales Rp1,000,000. Reversal correction: Dr Cash Rp1,200,000; Cr Sales Rp1,200,000. Neither error alone creates a trial balance difference.