Errors and Suspense Account with Journals Q4 ACCN1 June 2017 "Dai" inc Peters Pasties & Morgans Mops

Q4 from ACCN1 June 2017 covering journal entries to correct errors and assessing the impact of error correction upon profit for the year.
Links to the question paper and mark scheme here:
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[@zakariya-777]

the way you go through these questions, you make it seem so easy. when im in an exam i find it so difficult to be able to read the questions and know the dual effect and such. How can i contain all this information in my head and not overthink the question.

[@aqaaccountingteacher]

Practice is the key! You can’t memorise everything but if you know how to apply the “rules”, and know your layouts, you can solve anything!

[@r451_]

Hi, good video, thanks. I was just wondering if you have a video on limited company accounts, i cant seem to find one

[@aqaaccountingteacher]

Yes, there are several videos going through past exam questions on this topic such as this one: Limited Company Income Statement Massaro Limited Q2 ACCN2 AQA A Level Accounting June 2018 kzbin.info/www/bejne/gGqsgYZ4p9R1f5I Here’s a link to the playlist: kzbin.info/aero/PLBHwxDxca95HPqEk8Z1WRJ7qSPl-8dz3r&si=GB7qBkGyiij1wv-J

[@r451_]

@@aqaaccountingteacher Thank you

[@r451_]

@@aqaaccountingteacher Sorry to be a pain, but do you also have a playlist on the verification of accounting records?

[@aqaaccountingteacher]

@r451_ no, but you can search my channel for bank reconciliation, control accounts or trial balance and there should be a few to choose from.

[@r451_]

@@aqaaccountingteacherok thank you

[@dstinger9186]

Thanks so much for the video I just wanted to ask for question 4b error 4 why did profit go up

[@aqaaccountingteacher]

It’s because discounts received (income) had been treated as discounts allowed (expense). When it’s corrected, profit increases by twice that amount as it’s a reversal of entries.

[@aqaaccountingteacher]

It’s because discounts received (income) had been treated as discounts allowed (expense). When it’s corrected, profit increases by twice that amount as it’s a reversal of entries.

[@nsgaming5995]

I don't understand why you don't take off the cash discounts when working out the 1 month and 2 month credit?

[@aqaaccountingteacher]

Because they only qualify for cash (prompt payment) discount if they pay faster than 1 or 2 months.

[@anareezzm6734]

what if the question says “show the journal entry to correct the above errors” and not general journal?

[@aqaaccountingteacher]

It means the same thing but journal is an old term. More recent exams should refer to the general journal entries rather than just journal entries.

[@anareezzm6734]

@@aqaaccountingteacher ohh thank you!

[@user-gj4im7pw4b]

Isn’t credit sales an asset so crediting the customer would be ok?

[@aqaaccountingteacher]

No, sales are a type of income, so they are always credited to the sales account. For credit sales the double entry is Debit Customer’s Account (trade receivables = current asset) Credit Sales Revenue (income account) For cash sales: Debit Bank or Cash (current asset) Credit Sales Revenue (income) Have a look at these videos for the rules of double-entry: kzbin.info/www/bejne/bX2aoJytpL6Fb80 kzbin.info/www/bejne/e6TXlnd3aMZqatk

[@JoOt-yf1hl]

Hi there. Thanks for the upload. 4b question 2, caught me off guard a bit lol. Do happen to have a video going through the errors of a suspense account? I’m particularly interested in how to correct a ‘balance transfer error’ - when ledger balance is either misstated or omitted from the trial balance 🙂

[@aqaaccountingteacher]

Hello. Yes there are three or four if you search “suspense” on my channel. Including this one …. Q15 7127-1 2021 "Peter" Correction of Errors, Suspense Account and General Journal kzbin.info/www/bejne/gHelm4OLi9icbZo

[@JoOt-yf1hl]

@@aqaaccountingteacherthanks