Scope note:Everything up to and including the adjusted Trial Balance is studied by both G2 and G3 students — understanding the errors a Trial Balance cannot catch, correcting them with journal entries, working out their effect on profit and on the Statement of Financial Position, and re-totalling the Trial Balance after correction. Two further steps are G3 only: preparing a statement of adjusted profits and an adjusted Statement of Financial Position (or an extract of one). Only errors that a Trial Balance cannot detect are in scope. Errors that a Trial Balance would reveal — and the suspense account used to fix them — are not examined and are not covered here.
5 sections
Chapter 15 — Correction of Errors
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