ICAEW AF · Chapter 7 · Question 4 of 12
An electricity bill of £370 was paid and debited to the rent account. What journal is needed to correct the error?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Debit Electricity £370, Credit Rent £370
Explanation
The bank entry is correct, and the debit was made to the wrong expense account. To correct it, the rent account must be credited to remove the £370 and the electricity account debited to record the expense in the right place. The trial balance was not affected, so no suspense entry is needed.
More Errors, suspense accounts and correcting journals MCQs
- Q6A business opened a suspense account when its trial balance did not agree. The following errors were then found, and correcting them…
- Q7A sole trader's draft profit for the year is £64,800. The following matters have not yet been reflected: 1. Closing inventory was…
- Q8Which of the following errors would require an entry to the suspense account when it is corrected?
- Q9A credit sales invoice for £1,240 was entered in the sales day book as £1,420 and posted from there. What is the effect of this error and…
- Q10An invoice for goods bought on credit for £950 was not recorded in the books at all. Which journal corrects this error?