Day: April 8, 2024

In a business that uses control accounts, which of the following errors could result in a suspense account being required to balance the trial balance?

Select ONE answer:

1. Cash received from receivables treated as a cash sale
2. A supplier’s invoice for £32 recorded as £23 in the purchases account
3. Payments to suppliers of £647 recorded as £674 in the payables ledger
4. One page lost from the purchase daybook

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 2

1. Not correct
2. Correct – A supplier’s invoice for £32 recorded as £23 in the purchases account, which is a transposition error in the nominal ledger. In (1) we are still recording a Dr and Cr. The payables ledger does not affect the trial balance as it is a memorandum account (3) and in (4) neither side of the entry will be recorded.
3. Not correct
4. Not correct

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