CIMA BA3 · Chapter 7 · Question 4 of 10
A 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 balance on the suspense account?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) $1,810 debit
Explanation
The credit side exceeds the debit side by $216,110 - $214,300 = $1,810. A debit balance of $1,810 is needed in the suspense account to make the totals agree.
More Errors, the trial balance and suspense accounts MCQs
- Q6A machine costing $12,000 was debited to the repairs account. Which journal entry corrects the error?
- Q7A company's draft profit for the year is $45,600. It is then found that closing inventory was understated by $3,000 and an accrual for…
- Q8A purchase invoice for $3,980 was recorded in the purchase day book as $3,890 and then posted from there to the ledger. What type of error…
- Q9A trial balance fails to agree by $540. Which of the following transposition errors, made when posting one side of an entry only, could…
- Q10A 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…