PRC-1 · Chapter 8 · Question 45 of 100
Rent received of Rs. 1,400 was correctly entered in the cash book but debited to the Rent Received account in the general ledger. What is the balance in the Suspense Account before correction?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Rs. 2,800 Credit
Explanation
The cash receipt was debited to Cash correctly, but mistakenly debited again to Rent Received. This creates excess debits of 2,800. To balance, the Suspense account takes a credit balance of 2,800.
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