Accounting Multiple Choice Question – 4 November 2020

A trial balance does not balance and a Suspense account is opened.

Subsequently the following errors are found and the Suspense account is cleared.

1  A sales invoice for £1,240 had been omitted from the books.
2  Rent paid of £2,600 was entered correctly in the cash book but incorrectly as £6,200 in the Rent account.
3  The purchases journal was undercast by £1,980.

What was the original balance on the Suspense account?

Select ONE answer:

1. £1,620 credit
2. £4,340 debit
3. £5,580 credit
4. £5,580 debit

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct – (2) £6,200 – £2,600 – (3) £1,980
2. Not correct
3. Not correct
4. Not correct

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