# IGCSE Accounting Paper-2: Specimen Questions with Answers 7 - 9 of 103

## Passage

Mr. Tendulkar’s trial balance showed a suspense A/C of £ 32600 on the debit side. On rechecking the books, the following errors were discovered:

(i) An amount of £ 10000 received from Mr. Ganguly was posted to the debit side of Mr. Ashwin as £ 12000.

(ii) Salary paid to driver £4000 was debited to his personal A/C as £2400

(iii) Drawings of £2000 was credited to sales A/C as £3200

(iv) An amount of £6000 accounting for depreciation on car was posted as £600

(v) Sale of an old bat £20000 was credited to sales A/C as £12000

## Question number: 7 (2 of 5 Based on Passage) Show Passage

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Short Answer Question▾

### Write in Short

What does Mr. Tendulkar mean by Suspense A/C?

### Explanation

In order to avoid the delay in the preparation of final statements such as the profit & loss A/C and the Balance sheet, the amount of difference in the trial balance is put into a temporary A/C called suspense A/C.

## Question number: 8 (3 of 5 Based on Passage) Show Passage

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Essay Question▾

### Describe in Detail

What are the types of errors that usually occur in accounting?

### Explanation

The errors can be classified into 4 types

• Error of Commission
• Error of omission
• Error of complete omission
• Error of partial omission
• Error of Principle
• Compensating Errors

## Question number: 9 (4 of 5 Based on Passage) Show Passage

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Essay Question▾

### Describe in Detail

How will Mr. Tendulkar rectify the above said errors in his books?

### Explanation

Mr. Tendulkar rectifies the errors in his books by passing the reversal entry also called as the rectifying entry in his books of Accounts.

 Date Particulars L. F Debit Amt Credit Amt (i) Suspense A/C Dr 2000 Ganguly A/C Dr 10000 To Ashwin A/C 12000 (Being the excess amount received credited to suspense A/C (ii) Salary A/C Dr 1600 To driver A/C 1600 (Being salary for driver) (iii) Sales A/C Dr 3200 To drawings A/C 2000 To suspense A/C 1200 (Being Wrong credit to Sales A/C rectified) (iv) Suspense A/C Dr 5400 To car A/C 5400 (Being Depreciation accounted for) (v) Suspense A/C Dr 8000 To Sales A/C 8000 (Being the excess amount credited to sales A/C)