Day: May 17, 2024

A suspense account was opened by Alex when a trial balance failed to agree.

The following errors were later discovered.

1  A gas bill of £420 had been recorded in the power expense account as £240

2  A discount of £50 given to a customer had been credited to discounts received

3  Interest received of £70 had been entered in the bank account only

The original balance on the suspense account when it was opened was?

Select ONE answer:

1. Debit £210
2. Credit £210
3. Debit £160
4. Credit £160

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 –> DR Gas Bill (£420 – £240) £180 DR Discount (£50 * 2) £100 DR TOTAL £280 CR Interest Receivable £70 CR Balance B/D £210 TOTAL £280
2. Not correct
3. Not correct
4. Not correct

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