a. (i) Types of errors that can be revealed by the trial balance

• Casting error
• Partial reversal of entry
• Error of transposition
• Over or understatement of opening or closing balances
• Mis-statement error on the trial balance

(ii) Explanation of the types of errors

• Casting error This error occurs when adding up entries in the accounts resulting in under-casting or over-casting.
• Partial reversal of entry This is an error whereby the double entry for a transaction is posted to the same side of the respective accounts. For example, salaries paid may be debited to salaries account but wrongly debited to the cash book.
• Error of transposition Where an error of transposition affects only one side of the account, it will affect the trial balance. For example, a cheque of N6,661 received from a debtor may be correctly debited to the bank account but wrongly credited to the debtor’s account as N6,616
• Over or under-statement of opening or closing balances This is an error in which the debit or credit entry for a transaction is posted without posting the corresponding opposite entry. It could also be as a result of omission or misstatement of the balance on an account when extracting the trial balance.

b. (i) Niger Limited Correcting journal entries

| ii. Suspense account | 225,000 | | | Sales account | | 225,000 | | Being an expense of N25,000, but recorded as N250,000, now corrected | | |

| iii. Purchases account | 70,000 | | | Suspense account | | 70,000 | | Being omission of purchases on the purchases account, now recorded | | |

| iv. Depreciation account | 12,000 | | | Suspense account | | 12,000 | | Being error in the calculation of depreciation, which resulted in understatement of depreciation expense, now corrected | | |

| v. Suspense account | 70,000 | | | Sales account | | 70,000 | | Being credit sales of N35,000 debited to sales account in error, now corrected | | |

| vi. Expenses account | 8,000 | | | Suspense account | | 8,000 | | Being omission of an expense on expense account, now recorded | | |

| vii. Suspense account | 100,000 | | | Liabilities account | | 100,000 | | Being omission of liabilities from the account, now corrected | | |

| viii. Interest expense | 6,000 | | | Suspense account | | 6,000 | | Being overstatement on income, arising from the error in recording interest, now corrected | | |

| ix. Suspense account | 405,000 | | | Cash account | | 405,000 | | Being cash receipts of N45,000 but recorded as N450,000, now corrected | | |

| x. Cost of sales | 10,000 | | | Inventories account | | 10,000 | | Being overstatement of inventories, now corrected | | |

| xi. Suspense account | 20,000 | | | Bank account | | 20,000 | | Being omission of dividends payment on the cash book, now recorded | | |

| xii. Income tax expense | 35,000 | | | Tax payable | | 35,000 | | Being error in tax calculation, which resulted to tax underpayment now corrected | | |

| xiii. Bank account | 12,000 | | | Electricity account | | 12,000 | | Being payment of electricity bill, which was recorded twice, now reversed | | |

| xiv. Loan account | 60,000 | | | Bank account | | 60,000 | | Being omission of loan repayments from the records, now recorded | | |

b. (ii) Suspense account