1. Citing an example in each case, briefly explain four types of book keeping errors which are not disclosed by trial balance

2. The trial balance extracted from the books of james as at 30 september 2010 failed to agree. The debit difference $442000 was posted to suspense account.An income statement was prepared which showed a gross profit and net profit of $ of $1985000 and $1229000 respectively. Upon investigations, the following errors were discovered.

a. Aurchase of $150000 on credit was correctly posted to suppliers account but was completely omitted from the purchase day book

b. Sales amounting to $ 250000 to Bruce were erroneously credited to his account

c. Salaries paid for the month of September 2010 amounting to $230000 were recorded in the salaries account as $320000

d. Purchases of office stationary for $125000 were erroneously debited to purchase account

e. A payment of $45000 to Daniel, a creditor was erroneously debited to the account of another creditor

f. An entry of $21000 for returns outwards was made in error in the sales day book instead of in the purchases return book

g. A bad debt of $22500 is yet written off

h. Goods valued at $220000 wee taken for personal use but no entry had been made in the books

Required:

i. A fully balanced suspense account

j. Statement of corrected gross profit

k. Statement of corrected net profit

3.What do you mean by the error of commission

4.Disscuss the errors of principle

5.Explain any purposes of journal entries in the accounting process

6.Differentiate between consistency and materiality concepts as used in the accounting

7.Discuss five users of accounting information clearly indicating their information needs

8.What do the going concern means

9.Discuss five principles of the codes of ethics that govern the professional conduct accountants

10. Distinguish betweenpurchased good will and non-purchased good will