Explanation Errors: An error is a mistake committed in the process of book-keeping or in accounting. In some cases, errors may occur but, they will not affect the totals of the trial balance . Such an error can be found while preparing the trial balance or would be indicated by the unusual account balance. Error 1: In this case, the amount of land is recorded as $45,000 instead of $4,500. In order to rectify the slide error, the amount of $4,500 is added to the total debit balance and the amount of $45,000 is deducted from the total debit balance. Corrected amount of total debit balance } = ( Total of debit column in trial balance + Correct amount of land − Amount which is wrongly debited ) = $ 140 , 000 + $ 4 , 500 − $ 45 , 000 = $ 99 , 500 Therefore, the corrected amount of total debit balance in trial balance is $99,500 . Error 2: In this case, the amount of account receivable is recorded as $28,000 instead of $82,000. In order to rectify the error, the amount of $82,000 is added to the total debit balance, and the amount of $28,000 is deducted from the total debit balance. Corrected amount of total debit balance } = ( Total of debit column in trial balance + Correct amount of Accunts receivable − Amount which is wrongly debited ) = $ 140 , 000 + $ 82 , 000 − $ 28 , 000 = $ 194 , 000 Therefore, the corrected amount of total debit balance in trial balance is $194,000

MyLab Accounting with Pearson eText -- Access Card -- for Financial Accounting

12th Edition

ISBN: 9780134727677

Author: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.

Publisher: PEARSON

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Chapter 2, Problem 2.15S

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To discuss: The manner in which rectify the common accounting error.

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Chapter 2, Problem 2.14S

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For each of the transactions above, indicate the amount of the adjusting entry on the elements of the balance sheet and income statement.Note: Enter negative amounts with a minus sign.

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MyLab Accounting with Pearson eText -- Access Card -- for Financial Accounting

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The manner in which rectify the common accounting error.

Solution Summary: The author explains that an error is a mistake committed in the process of book-keeping or in accounting.

To discuss: The manner in which rectify the common accounting error.

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Chapter 2 Solutions