A-LevelAccountingError Correction and Suspense AccountsOct/Nov 2020Paper 1 Q31 Mark
A trader depreciates fixtures and fittings at the rate of 10% per annum on cost. On 1 January 2019 a purchase of new fixtures and fittings, $5000, was posted to the advertising account in error. What was the effect of this error on the trader's capital account on 31 December 2019?
Aoverstated $4500
Boverstated $5000
Cunderstated $4500
Dunderstated $5000
✓ Correct Answer
The correct answer is C. This question tests the candidate's understanding of error correction and suspense accounts within the Accountingsyllabus. The examiner's mark scheme requires...
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
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