Cambridge 0452 and 0985 · Sub-topic 3.2
Correction of errors
The 4 skills the syllabus asks for, the slips that cost marks, and how our teachers explain it.
What students must be able to do
- Correct errors with journal entries.
- Explain the suspense account as a temporary balancing device and use it to correct errors.
- Adjust profit or loss after errors are corrected.
- Show the effect of corrections on the statement of financial position.
Official wording: Cambridge IGCSE Accounting 0452: syllabus for 2027-2029 (Version 1), page 13; Cambridge IGCSE Accounting 0452: syllabus for examination in 2026 (Version 2, December 2025), page 12. See all sources.
How our teachers teach it
The most useful habit is to separate errors that went through the suspense account from errors that did not. Our teachers have students write each correction as a journal first, then post it, then tick whether profit is affected. A revised-profit table finishes the question, and a tidy table is where most of the marks sit.
Mini-example: a trial balance that is RM90 out
A trial balance has debits RM90 higher than credits. The difference goes to a suspense account as a credit of RM90 so the trial balance agrees for now.
Error 1. Rent paid of RM340 was entered in the rent account as RM430, while the bank was correctly credited with RM340. Rent is over-debited by RM90. The journal is Dr Suspense RM90, Cr Rent RM90. The suspense account clears to nil, and because rent expense falls by RM90, profit rises by RM90.
Error 2. Equipment of RM800 was debited to the repairs account. Debits and credits were equal, so the trial balance agreed and suspense is not used. The journal is Dr Equipment RM800, Cr Repairs RM800. Repairs expense falls, so profit rises by RM800, and non-current assets rise by RM800.
Finish with a statement of corrected profit: start from the original profit, add RM90 and RM800, and show the new total. See the correction of errors worked example for a full table.
If any of these slips sound familiar, we can help. A teacher can mark your child's answers on correction of errors line by line and show where the marks go. Book a trial class.
Unchanged between 2026 and 2027
The official wording of this sub-topic is essentially the same in both syllabuses, so students on either version can prepare in the same way.
Where it is examined
Correction of errors can appear in either paper, as a short question or as part of a longer task. Cambridge bases both papers on the whole syllabus. See the guides to Paper 1 and Paper 2 for the format.
Sources: Cambridge IGCSE Accounting 0452: syllabus for 2027-2029 (Version 1), pages 9, 22. See all sources.
Practise it
- Key terms: Suspense account, Journal, Compensating error
- Skills: How to correct errors using a suspense account, How to write a journal entry
- Layouts: Suspense account format, General journal format
- Worked examples: correction of errors
- Practice questions: correction of errors
- One-to-one Cambridge 0452 tuition
Other sub-topics in topic 3
Correction of errors: questions
Why does correcting an error change profit?
Does the 0985 (9 to 1) syllabus cover correction of errors too?
Which syllabus numbering should I use?
Get help with correction of errors
The trial class works through Cambridge IGCSE Accounting questions with a teacher, so you see how the paper is approached. One-to-one and online, from RM75/hr.
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