AS Accounting Chapter 6

Limitation of Trial Balance Errors

Identify which type of accounting error and also write down its definition
1. Trade receivable is overstated by $1000 and Trade payable is overstated by
$1000.

2. Cash Sales of $5000 is omitted from the accounting record.

3. Discount allowed of $500 has been debited to discount received account

4. Rent expenses paid by cash is credited to Rent and debited to cash

5. A sales invoice for $700 is posted to the sales journal as $760

6. Cash $500 has been debited to Bank account