Accounting Multiple Choice Question – 30 April 2024

The trial balance of Alex Ltd did not agree and a suspense account was opened for the difference.

Which TWO of the following errors found would require an entry to the suspense account as part of the process of correcting them?

A  A cash refund to a customer was correctly treated in the cash book and then credited to the receivables control account

B  The sale of goods to an employee for £300 was recorded by debiting sales and crediting payables

C  The discount received column total in the cash book had been credited in error to the discount allowed account

D  Some cash received from customers had been used to pay sundry expenses. It was debited to expenses and credited to the cash book

E  £5,800 paid for plant repairs was correctly treated in the cash book and then credited to plant and equipment asset account

Select ONE answer:

1. A&B
2. A&C
3. A&D
4. A&E

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 4

1. Not correct
2. Not correct
3. Not correct
4. Correct – A&E – The transactions should both have been debited. In (B), (C) and (D) the double entry is complete though not correct.

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