CORRECTION OF ERRORS errors made in school homework, bookkeepers cannot undo errors using correction tape. Whenever errors in recording transactions occurs, bookkeepers will use correcting double entries to make right the errors.



The trial balance is designed to detect the following types of errors:

1) Omission of ither the debit or credit entry of a transaction

2) Debit one account with an amount and credit another account with another amount

3)  Two debits or credits for a transaction

4)  Calculation error in the trial balance, journal or in a ledger



The following are errors that are not revealed by the trial balance. This would mean that a balanced trial balance can still consist of errors. These errors are:


  1. Error of principle (P)

This type of error occurs when an items from different categories are mixed up with different accounts.

Example: Motor vehicle repairs incurred was recorded as motor vehicle

To rectify this error, we must remove the balance from motor vehicle (asset) and include it in motor vehicle repairs (expense):

Dr Motor vehicle repairs

Cr Motor vehicle


  1. Error of omission (O)

This error occurs when a transaction goes is not recorded or omitted.

Example: Business purchased motor vehicle on credit. This was not recorded.

To rectify this error, simply record the transaction:

Dr Motor vehicle

Cr Other payable


  1. Error of original entry (O)

This type of error occurs when wrong numbers are used (transposition of figures).

Example: Bought goods for $345 by cheque, this was recorded as $354.

To rectify this error, we need to correct the overcharge of $9:

Dr Cash at bank      $9

Cr Inventory               $9



  1. Complete reversal of entries (R)

This type of error occurs when journal entries are recorded the opposite both sides of accounts

Example: Bought goods on credit, this was recorded as debit trade payable and credit inventory $100.

To rectify this error, we need to use the correct journal entries with twice the amount. (First $100 to reverse the error, second $100 to record the transaction):

Dr Inventory                           $200

Cr Trade payable                 $200


  1. Compensating errors (C)

Error in computation or recording of a transaction that is offset by an error that is equal and opposite.
Example: Sales revenue and inventory are both understated.

To rectify this error, we need to increase the value of both sales and inventory:

Dr Inventory

Cr        Sales revenue


  1. Error of commission (C)

This type of error occurs when items of the same category is mixed up with different accounts.

Example: Received cheque from trade receivable Alex was treated as received from trade receivable Brandon.

To rectify this error, we need to remove from trade receivable Brandon and record in trade receivable Alex:

Dr Trade receivable Brandon

Cr Trade receivable Alex



  • Identification of the type of errors
  • Prepare the journal entries to correct errors
  • Analyse the effects of errors on profit for the period and on Balance Sheet items
  • Prepare an adjusted trial balance or balance sheet after correction of errors

2017 7175 GCE O Level POA Suggested Solutions



Sent on 28 Oct 🙂

Hey folks!

The solutions are out! This year predictions are pretty on point. 2 misses though.

Need your help! If you haven’t submit your testimonial, please submit here:

Submit My Testimonial!

Download the solutions with the button below!

Download Now!

2017 7088 GCE N Level POA Suggested Solutions

Some misses but several hits this year, sent out 4 Oct:


Another round of predictions sent on 11th Oct- 2 topics on dot.

Anyhow, the suggested solutions for this year’s N Level POA is here. Download now:

Download Now!2017 N Level POA Solutions!

There's some typos but I'll update them after the weekend. Gotta be off to teach my Os.

Have a great weekend!



2015 7175 GCE O Level POA Suggested Solutions is Out!

Congratulations to all Jump Grades’ students!

We’ve been slogging it out over the past week focussing on the key chapters we were spotting that might come out for Os:

At Jurong East:

20161029 121238

At Macpherson (Bedok + Kovan Students)

20161029 145828


20161101 181840

The results are out. Comparing Caleb’s guess vs what came out. It’s not too bad:




Alright. Here you go. My SUGGESTED solutions attached. If you find any errors, please feel free to let me know in the comments section below or via whatsapp (better!) – Caleb

7175 2016 GCE O Level Suggested Solutions Paper 1

7175 2016 GCE O Level Suggested Solutions Paper 2

I’ll be uploading the suggested solutions for Paper 1 soon!

All the best for the rest of the papers!

2016 GCE N Level 7088 Suggested Solutions Are Out!

Phew! It’s over. 

On Paper 1 day last Friday, we tackled multiple topics + theory just the night before exams. Here’s the result:

The Suggested Solutions

Here’s the draft/suggested/imperfect solutions for Paper 1 and 2.

Paper 1:

Paper 2:


Feel free to comment or reply with your feedback and suggestions!

Comparison between straight-line and reducing methods of depreciation



Methods Advantages Disadvantages Effect on Net Profit
1. Straight Line

a. Dep = (HC-SV) Useful Life


b. Dep = HC x % Rate

• Simple to apply

• Calculation of dep easy to understand

• For assets like furniture that has a constant rate of use

• Not suitable for assets like machinery where the benefits obtained from using the assets in each period are not of fixed amounts. Constant reduction of a fixed amount
2. Reducing Balance


Dep = NBV x % Rate

• More accurately reflect pattern of usage of assets if assets provide most benefits during initial years

More maintenance and repairs costs in later years so total expenses incurred for asset more or less become constant over its life (since more dep charge in early years)

• May never fully depreciate asset

• High depreciation charge in the early years of assets’ life

• Higher reduction in the early years compared to the later years

* HC = Historical cost

* SV = Scrap value

* NBV = Net book value

= Cost – accumulated depreciation

2015 7175 GCE O Level POA Suggested Solutions is out!


2015 Master POA Cohort.png


Weekend proved to be an exciting one for all of us at Caleb’s 2015 POA Crash Course at YMCA Room 206.
Challenging as it is to spot questions in the debut exams from the new syllabus, we did our best and covered most of what we thought will come out for this year’s exams. We cheekily call it, ‘Caleb’s Crystal Ball.’ XD
That said, here’s the suggested solutions for today’s paper:
Download your O Level POA Suggested Solutions now <–

And while you are at it, LIKE US on Facebook!


Caleb Ho
The POA Tutor

P.S: If you have Sec 2 or 3 friends who need POA foundational classes, please let me know. Classes start from 9 Nov 2015.

[Video] Difference Between Bookkeeping And Accounting



Accounting Bookkeeping
Accounting is the process of recording, summarising, reporting, analysing and interpretation of financial information. Book-keeping is part of the accounting process. It involves the process of recording accounting data according to set rules. 
Role of accounting is to communicate financial information for decision-making purposes.  Role of book-keeping is to ensure a systematic and accurate recording of business events

2014 7092 GCE O Levels POA Suggested Solutions for Paper 2 (Only)

No greater delight is there as a POA tutor to have used super eye-power to spot questions in the last two days for his beloved students!


Unlike before, the crash course this year has been shorten from 18 hours (3 miserable days) last year to a mere 8 hours over 2 days with battle-weary-grouchy-always-hungry-panda-eyes-16-yr-olds.

I have the other subjects to thank for taking time away from my students for POA.


Ok. Moving on:

Delightful students maketh a delightful tutor.




> 50 students witness the massive bet I took at YMCA and Jurong East on 4th and 5th Nov:

Beside the obvious (Trading, PLA, Current A/C and B/S) and theory, major topics spotting were made plain on the whiteboard the last two days.


Topics Spotted Came out
Analysis and Interpretation of final accounts
– Profitability and commentary
Stock Valuation Partially. Theory
Bank Reconciliation YES!
Capital versus Revenue Expenditure/Receipt Neh.
Incomplete Records (Debtor/Creditor Ctrl) YES!
Capital Structure (WC, CO, CE) YES!
Provision for Doubtful Debts YES!
Correction of Error (Partial emphasis) YES!


Also mentioned to not focus on:

P4 Dep + Disposal of Fixed Assets YES!
Amalgamation YES!
Control Accounts No. Sad smile Saved only by revision of incomplete records


The Solutions

Of course you didn’t come here to see how delighted my students and I are.

So here’s the draft/suggested/imperfect solutions for Paper 2. I gave up trying to fish for Paper 1. If you have, please what’s app me:

2014 7092 GCE O Levels POA Paper 2 Suggested Solutions

As with previous attempts for solutions, this post gets flamed with questions, doubts and critics even with this caveat and repeated again in the pdf.

I’ll leave you with a quote:

“It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs, who comes short again and again, because there is no effort without error and shortcoming; but who does actually strive to do the deeds; who knows great enthusiasms, the great devotions; who spends himself in a worthy cause; who at the best knows in the end the triumph of high achievement, and who at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who neither know victory nor defeat. “

So. Bring it on.

To a better tomorrow and the holidays!


Caleb Ho

P.S: Please also like us on Facebook. This foreign thing is still pretty new to us and we are putting up stuff.

I promise to put useful things for you and your friends!

2013 POA Suggested Solutions for Paper 2!

Hi there!

For those who have put in your fair share of labor, I hope today’s paper was easy for you. 🙂 This year, we have a lag with sources for Paper 1. We will put up the suggested solutions for P1 ASAP. If you are looking for it, head straight below, read the FAQ section and download your answers for review.


To my 2013 students, I just want to say thanks for making this year one of the most enjoyable and memorable moments in my teaching career.

You’ve been such a delightful and fun cohort to teach. What a privilege it is to share moments with you in the classrooms and outside of them.

They are memories I’ll have with me for a long time. I’m grateful for the sense of joy and anticipation every time I am in the class and I’m so happy to see so many survive my very bad jokes.

Look forward to see you make good of the learning experience we had together (POA or not) and may you excel tremendously in whichever industry you set your eyes on.

I’ll miss you sorely. 🙂

Your partner in crime,



Frequently Asked Questions

Q: Can you upload the question paper for Paper 1?

A: No, unfortunately. Question papers cannot be uploaded due to copyright reasons. Authorized publishers will make these available at all major bookstores from Feb 2014 onwards.

Q: My presentation is this like my school teacher says, it differs from your answers – will I be marked wrong by Cambridge?

A: I’m not the examiner/guru/genie. This remains as suggested solutions and serves as a point of reference.They are not absolute answers. We can discuss who’s right and wrong till the cows come home but it’s decided by the all-power examiner. 🙂

Q: I noticed something is wrong with your answer. Did you make a mistake?

A: Well, the mistake could be mine. In fact, assume it’s mine. 🙂

That’s why I put it up here for discussion. Help better it that all of us can benefit. Tell us your thoughts in the comments section below. I’ll update and upload the new version(s) if there is a need. 🙂


When you are ready, right click and choose “Save As” to download:

7092/02 GCE O’ Level Principles of Accounts 2013 Paper 2 Suggested Solutions

Again, we will upload the answers for Paper 1 as soon as we can. 🙂

Update 1:

8 Nov, 9:48a.m -Solution update:

Adrian Chiam pointed out that insurance expenses was for 15 months. (Thanks)

22 Nov, 5:42p.m

Solutions revised! Credit goes to:

Joshua Ng, Jun Hong, poastudent, Tim, Qq, Green, Chloe and the community on!

Comments are closed at this time. Check back soon!