ICAEW AF · Chapter 7 · Question 3 of 12
A trial balance has debit balances totalling £248,900 and credit balances totalling £251,370. A suspense account is opened to make the totals agree. What is the balance on the suspense account?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) £2,470 debit
Explanation
The credit total exceeds the debit total by £251,370 - £248,900 = £2,470. To make the trial balance agree, a debit balance of £2,470 must be added to the debit side, so the suspense account has a debit balance of £2,470. It stays there until the underlying errors are found and corrected.
More Errors, suspense accounts and correcting journals MCQs
- Q5Cash sales of £5,630 were correctly entered in the cash book but credited to the revenue account as £5,360. What journal corrects this…
- 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…