AccountingCode 7707
Corrections of errors
What this topic asks you to be able to do
- how errors are corrected through journal entries
- how a suspense account is used for a short time to make the two sides of the trial balance agree
- the procedure for putting right mistakes with a suspense account
- how the profit or loss of an accounting period is adjusted once errors have been corrected
- the impact that correction of errors has on the statement of financial position