PRACTICE TOPIC
Accounting Error
Practice Accounting Error with 14 accounting challenges on Accountely — instant IAS/IFRS-compliant scored feedback on every submission.
What accounting error covers
Errors are mistakes in prior financial statements — a miscalculation, an omission, or a misapplication of a standard using information that was available at the time. Material prior-period errors are corrected retrospectively: you restate the comparative amounts and adjust the opening balance of retained earnings, rather than running the correction through current profit.
These challenges give you the erroneous treatment and ask for the correcting entry plus the restated figures.
Where marks are usually lost
- Putting the whole correction through current-year profit instead of opening retained earnings.
- Missing the tax effect of the correction.
- Correcting only the balance sheet and leaving the comparative income statement untouched.
Further readingIAS 8: policies vs estimates vs errors
14 Accounting Error practice challenges
TitleTypeDifficulty
Timberline Lumber - Correcting Entries JournaleasyWeston & Co - Preparing a Corrected Trial Balance Trial BalancemediumOakmere Software - Correcting Research Costs Capitalised as Development (IAS 38) Multi-StatementmediumBrackenfield Group - Error Corrections and Accounting Changes JournalhardHarrowgate Stores - An Inventory Error That Corrects Itself Multi-StatementmediumKestwick Traders - The Receivables Control Account and Reconciling the List of Balances Multi-StatementmediumPemberton Retail - Corrected Trial Balance with a Suspense Account Trial BalancehardDovetail Services - Change in Estimate and Correction of Prior-period Errors Multi-StatementhardQuenby Printworks - Correcting a Lease Recorded as Rent (IFRS 16) Multi-StatementhardLindenfold Hardware - Bank Reconciliation With a Book Error and a Bank Error Multi-StatementhardFernhollow Publishing - Correcting a Prior-Period Error (IAS 8) Multi-StatementhardKingsmere Ltd - Statement of Changes in Equity: Share Issue, Revaluation, Dividend and a Prior-Period Error Multi-StatementhardCase Study: Penhallow Ltd - Two Errors, a Policy Change and an Estimate Change in One Year (IAS 8) Multi-StatementhardRockhaven Ltd - Policy Change, Estimate Revision and Error Correction (IAS 8) Journalhard