A-level Accounting₇₁₂₇

A-level Accounting Specification Specification for first teaching in 2017

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3.4 Verification of accounting records

Content	Additional information
Verification of the double entry records.	Verification techniques are: trial balance, bank reconciliation statements, sales ledger control accounts, purchases ledger control accounts. Control accounts will be memorandum records and could include the following in addition to transactions stated or implied elsewhere: contra entries interest charged on overdue accounts debit balances in purchases ledger credit balances in sales ledger.
How to correct errors in double entry records.	Correcting errors includes the use of the general journal and suspense account. Errors could include those revealed by a trial balance as well as those that are not revealed.
The effect of errors on profit calculations and statements of financial position.	The effect of errors includes the redrafting of financial statements to correct errors.
The benefits and limitations of verification techniques.	The benefits and limitations may include identifying errors that are revealed and those that are not revealed by the relevant verification technique. Errors revealed by trial balance could include: addition partial omission transposition unequal posting. Errors not revealed by trial balance could include: commission complete reversal compensating omission original entry principle. Relevant errors (revealed and not revealed) from the lists above will apply to control accounts and bank reconciliations.