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:
- Debit £210
- Credit £210
- Debit £160
- 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
- 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
- Not correct
- Not correct
- Not correct
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