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A suspense acc shows a credit balance of 130. Which of the following could be due to?
A: ommiting a sale of 130 from the sales ledger
B: recording a purchase of 130 twice in the purchases acc
C: failing to write off a bad debt of 130
D: recording an electricity bill paid of 65 by debiting the bank acc and crediting the electricity accD is co-exclusive error. C is I thought right choice since when we failed to write off bde then the Trade recievables acc is closed(130 is credited to TR I mean) so we should credit suspense account debiting bd expense.
Answer it says B. But here we want to credit purchases acc and debit suspense. So balance will be 130 dr not credit. Please explain sir!!After correcting the error, the balance on the suspense account should be zero.
At the moment there is a debit balance of 130, and so the correction must be whichever means we have to credit suspense with 130 (so as to end up with zero).
So the answer is B because we will credit suspense when we correct the error.
(It is not C because if we have failed to write off the debt then there will have been no debit and no credit – so the trial balance will still have balanced and there would be no suspense account.)
Sir the problem is that it is Now credit balance in suspense:D. I thought there should be debit balance!!! In order for us to credit to correct the error…That’s my question.stuck revising with errors in kit:(
Ooops – sorry, I must have been dreaming.
At the moment suspense has a credit balance of 130.
If the purchase has been recorded twice in purchases, it means purchases will have been debited twice and therefore we need to credit purchases to remove one of them. The double entry is to debit suspense.
Now the balance on suspense is zero
(Now it should make sense).
Sir, my problem is that I don’t understand what the question wants…should we end up with clear suspense acc or with a credit balance of 130. Could you please stress on this.
The question asked what could the balance be due to. Since after correcting any errors, the balance should end up being zero, it is whichever error that when corrected would make the balance end up being zero.
Could you show in t accounts I don’t understand sir…i understand now like: we have debited by 130 into suspense. So the balance in suspense is 0…original balance is then closing of 130 in t acc?
I cannot write out t-accounts here, and I really cannot say more than I have said in my last reply – I have said what the debit and credit to correct the error is, so you should be able to imagine the t-accounts yourself.
A suspense acc shows a credit balance of 130. Which of the following could be due to?
A: ommiting a sale of 130 from the sales ledger
B: recording a purchase of 130 twice in the purchases acc
C: failing to write off a bad debt of 130
D: recording an electricity bill paid of 65 by debiting the bank acc and crediting the electricity accExcuse me, sir but I have a question about the same problem. I thought the answer should be A. But they gave the right answer B. I am wondering why it is not A.
The sales (receivables) ledger is not part of the double entry – it is memorandum only.
The purchases account is part of the double entry, so an extra debit in that account will result in a credit in the suspense account.
I do suggest that you watch our free lectures on Books prime entry and on Suspense accounts.
Our free lectures are a complete course for Paper F3 and cover everything needed to be able to pass the exam well.
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