About Verification: errors, suspense, control accounts and bank reconciliation in O Level Accounting
Verification: errors, suspense, control accounts and bank reconciliation is one of the 6 main topics in our O Level Accounting (Cambridge (CAIE) 7707) question bank, and about 18% of its real questions come from it. Tayyari Karo has 77 real questions on this topic from 2021 to 2026, from Paper 1, Paper 2; 68 are multiple choice and marked instantly, and the rest are structured questions with a model answer. By difficulty: 34 medium, 29 hard, 14 easy.
Work through the questions below, then open the explanation for each one. Redo the ones you missed a few days later.
Try 6 real questions
These are real past-paper questions. Think of your answer first, then open the explanation.
May/June 2026 · Paper 1 · Verification: errors, suspense, control accounts and bank reconciliation
Betty opened a suspense account with an entry of $180 on the debit side.
Which error had made this necessary?
- Discount received of $90 had been posted to the debit side of the discount received account.
- Purchases of $40 had been recorded in the purchases journal as $140.
- Rent paid of $530 had been entered on the debit side of the rent expenses account as $350.
- The sales journal had been undercast by $180.
Show answer and explanation
Answer: C. Rent paid of $530 had been entered on the debit side of the rent expenses account as $350.
Debiting $350 instead of $530 leaves debits $180 short, so a $180 debit to suspense is needed.
May/June 2025 · Paper 1 · Verification: errors, suspense, control accounts and bank reconciliation
Somraj's bank statement credit balance $740. Bank charges $30 not in cash book; cheque paid not presented $150. What is the updated cash book balance?
- $590
- $620
- $860
- $890
Show answer and explanation
Answer: C. $860
740 + 150 (unpresented) - 30 (charges) = 860.
May/June 2024 · Paper 1 · Verification: errors, suspense, control accounts and bank reconciliation
Trevor omitted a cash payment of $240 for insurance for 12 months ending 30 November 2021, when preparing statements for the year ended 31 December 2020. What was the effect on his statement of financial position?
- capital overstated $20, other receivables understated $220, cash overstated $240
- capital overstated $20, other receivables overstated $220, cash overstated $240
- capital understated $220, other receivables overstated $20, cash understated $240
- capital understated $20, other receivables overstated $220, cash understated $240
Show answer and explanation
Answer: B. capital overstated $20, other receivables overstated $220, cash overstated $240
2020 expense = 1 month ($20) understated -> capital overstated $20; prepayment $220 understated; bank overstated $240.
Oct/Nov 2024 · Paper 1 · Verification: errors, suspense, control accounts and bank reconciliation
Jim: cheques paid to suppliers $3750, discount received $65. Entries in purchases ledger control account?
- credit discount received $65, debit bank $3750
- credit blank, debit bank $3750 and discount received $65
- credit bank $3750, debit discount received $65
- credit bank $3750 and discount received $65, debit blank
Show answer and explanation
Answer: B. credit blank, debit bank $3750 and discount received $65
PLCA is debited with bank 3750 and discount received 65 (both reduce the liability); credit side is purchases from the purchases journal.
Oct/Nov 2023 · Paper 1 · Verification: errors, suspense, control accounts and bank reconciliation
What does it mean if the totals of a trial balance agree?
- All the arithmetic in the ledger is correct.
- All transactions have been entered in the correct ledger accounts.
- All transactions have been entered on the correct sides of the ledger.
- Total debit balances equal total credit balances in the ledger.
Show answer and explanation
Answer: D. Total debit balances equal total credit balances in the ledger.
May/June 2022 · Paper 1 · Verification: errors, suspense, control accounts and bank reconciliation
What is an example of a compensating error?
- A payment for office equipment repairs was debited to the office equipment account.
- A purchase of goods from C Jones was credited to the account of C Johns.
- The sale of goods, $65, to A Aziz was entered in the books as $56.
- The wages account was undercast by $100 and the rent account was overcast by $100.
Show answer and explanation
Answer: D. The wages account was undercast by $100 and the rent account was overcast by $100.
Two equal and opposite errors that cancel out.
