Day: May 3, 2022

A business’s suspense account appears as follows:

discount allowed 150 opening balance 100
sales 50
£150 £150

Which statements are correct?

1 Total debits had been £100 less than total credits in the trial balance.
2 The sales account had been overcast by £50.
3 The discount allowed account had been overcast by £150.

Select ONE answer:

1. 1 and 2
2. 1 only
3. 2 and 3
4. 3 only

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 3

1. Not correct
2. Not correct
3. Correct
4. Not correct

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