ICAEW AF · Chapter 7 · Question 8 of 12
Which of the following errors would require an entry to the suspense account when it is corrected?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Stationery of £85 paid by cheque was credited to both the bank account and the stationery account
Explanation
Only errors that cause the trial balance to disagree are corrected through suspense. Crediting both the bank and the stationery account produces two credits and no debit, so the trial balance would not balance. The other errors each have equal debits and credits, so they are corrected by a journal between the ledger accounts concerned without using suspense.
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