CIMA BA3 · Chapter 7 · Question 10 of 10
A cash sale of $900 was recorded by debiting both the bank account and the sales account with $900. A suspense account was opened for the difference. Which journal corrects the error?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Debit Suspense $1,800, Credit Sales $1,800
Explanation
Sales should have been credited with $900 but was debited with $900, so a credit of $1,800 is needed to reverse the wrong debit and record the correct credit. Debits exceeded credits by $1,800, so the suspense account has a $1,800 credit balance, which is cleared by debiting suspense.
More Errors, the trial balance and suspense accounts MCQs
- Q2A payment received from customer P. Jones was credited to the account of customer P. James in the receivables ledger. What type of error…
- Q3Which of the following errors would cause the trial balance totals to disagree?
- Q4A trial balance has debit totals of $214,300 and credit totals of $216,110. A suspense account is opened to make it balance. What is the…
- Q5A suspense account was opened when a trial balance did not agree. The following errors were then found, and these explain the whole…
- Q6A machine costing $12,000 was debited to the repairs account. Which journal entry corrects the error?