Which stakeholder will not find the schedule of NCA useful?
Local Community
Which of the following is an example of an error of principle?
An invoice for machinery repairs posted to the machinery cost account.
Which items would be included on the debit side of the purchase ledger control account?
Contra Entry; discounts received; purchase return
Which of the following is an example of capital income?
Trade in value of machinery used in part exchange
What is the correct formula for calculation of interest cover?
Profit before interest and tax / interest payable
Which book of prime entry will be used to record a cheque received from a previously written off statement irrecoverable debt
Cash Book
a bookkeeper received a purchase invoice that hasn’t been recorded in the accounts explain why this error may not be discovered .
• It is a complete error of omission (1 mark) — the purchase invoice has not been entered in the purchases journal and nothing has been posted to the payables ledger or purchases account.
• Both the debit (purchases) and credit (trade payables) are missing, so the trial balance will still agree/totals will balance (1 mark).
• The error will therefore not be revealed by the trial balance or by the purchases ledger control account (1 mark).
