Accounting Multiple Choice Question – 18 August 2024

When Alex plc’s trial balance failed to agree, a suspense account was opened for the difference.

The trial balance totals were:

Debit £864,390
Credit £860,930

The company does not have control accounts set-up for its receivables and payables ledgers.

What will the balance on Alex plc’s suspense account be after making the necessary entries to correct the errors affecting the suspense account?

Select ONE answer:

1. £2,940 Debit
2. £15,060 Credit
3. £14,140 Debit
4. £9,860 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- Cr Opening Balance £3,460 + Plant Asset (£2,800 * 2) £5,600 – Share Capital £3,000 – Motor Vehicles £9,000 = Cr Closing balance == > £2,940 Debit
2. Not correct
3. Not correct
4. Not correct

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