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?

Q: What is the correct answer to this A-Level Accounting question?

The correct answer is C: understated $4500.

Q: What topic does this question test?

This question tests Error Correction and Suspense Accounts in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Aoverstated $4500

Boverstated $5000

Cunderstated $4500

Dunderstated $5000

✓ Correct Answer

The correct answer is C: understated $4500

📋 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...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

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About This A-Level Accounting Question

Topic

This multiple-choice question tests Error Correction and Suspense Accounts in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting Oct/Nov 2020 examination, Paper 1 Variant 2.

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