Question: Be able to determine how an error in a journal, a subsidiary ledger, or a general ledger affects other records and the financial statements. Give

Be able to determine how an error in a journal, a subsidiary ledger, or a general ledger affects other records and the financial statements. Give examples. Understand how an error in a certain step in the accounting cycle will carry through the records. For example, if a purchase on account transaction is not recorded in the general journal, it will not be posted to the suppliers subsidiary account or the general ledger. What accounts will be in error? Will the trial balances be in balance? What are the effects on the financial statements?

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