CORRECTION OF ERRORS

YEAR 10 LESSON 1, WEEK 5

REVISIONS
STARTER ACTIVITY 1
Learning objectives
 Be able to correct errors by What do you understand by the term error.?
means of journal entries
 Explain the use of suspense
account as a temporary measure
to balance the trial balance
 Correct errors by means of
suspense accounts
 Adjust a profit or loss for an
accounting period after the
correction of errors
 Understand the effect of
correction of errors on a
statement of financial position
 YEAR 10 CORRECTION OF ERRORS
Errors are defined as: ‘omissions
Learning objectives from and misstatements in the
entity’s financial statements for one
 Be able to correct errors by
means of journal entries
or more prior periods arising from a
 Explain the use of suspense
failure to use, or misuse of, reliable
account as a temporary measure information.
to balance the trial balance
 Correct errors by means of
suspense accounts
 Adjust a profit or loss for an Errors in this context could be mathematical mistakes,
accounting period after the mistakes in applying policies, oversights or
correction of errors misinterpretation of the facts. It also includes fraud.
 Understand the effect of
correction of errors on a
statement of financial position
 CORRECTION OF ERRORS
YEAR 10
STARTER ACTIVITY 2

What do you know about the term correction of errors.

Learning objectives

 Be able to correct errors by means of

journal entries
 Explain the use of a suspense
account as a temporary measure to
balance the trial balance
 Correct errors by means of suspense
accounts
 Adjust a profit or loss for an
accounting period after the
correction of errors
 Understand the effect of correction
of errors on a statement of financial
position
 YEAR 10 CORRECTION OF ERRORS

Learning objectives TYPES OF ERRORS

 Be able to correct errors by
means of journal entries
 Explain the use of a suspense
account as a temporary measure
1.Errors affecting the trial
to balance the trial balance
balance.
 Correct errors by means of
suspense accounts
 Adjust a profit or loss for an
2.Errors that do not affect
accounting period after the
correction of errors
the trial balance
 Understand the effect of
correction of errors on a
statement of financial position
 CORRECTION OF ERRORS
YEAR 10 1.Errors affecting the trial balanc
 Be able to correct errors by
means of journal entries
 Explain the use of a suspense
account as a temporary measure
to balance the trial balance
 Correct errors by means of
suspense accounts
 Adjust a profit or loss for an
accounting period after the
correction of errors
 Understand the effect of
correction of errors on a
statement of financial position
YEAR 10 CORRECTION OF ERRORS
Continuation…
 Be able to correct errors
by means of journal
entries
 Explain the use of a
suspense account as a
temporary measure to
balance the trial balance
 Correct errors by means
of suspense accounts
 Adjust a profit or loss for
an accounting period
after the correction of
errors
 Understand the effect of
correction of errors on a
statement of financial
position
YEAR 10 CORRECTION OF ERRORS

 Be able to correct errors

by means of journal
entries
 Explain the use of a
suspense account as a
temporary measure to
balance the trial balance
 Correct errors by means
of suspense accounts
 Adjust a profit or loss for
an accounting period
after the correction of
errors
 Understand the effect of
correction of errors on a
statement of financial
position