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Hello, i have a question
A trial balance extracted from would require a sole trader’s record failed to agree, and a suspense account was opened up for the difference.
Which of the following errors would require an entry in the suspense account in correcting them?1. Cash received from sale of non-current asset was correctly entered in the cash book but was debited to the disposal account
2. The balance on the rent account was omitted from the trial balanceMy problem is why the error 1 will be effect to the trial balance, i mean we just account for the wrong account between the cash account and disposal account. Do they place in the same class? if so, we will have a error of principle, right?
For error 1, since they received cash they will have debited the cash account and should credit somewhere. Here they have debited the disposal account.
So they have two debits instead of a debit and a credit, and therefore the trial balance will not balance. (The disposal account is the correct account, although that is not relevant – all that is relevant is they they have two debits instead of a debit and a credit).
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