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I had this question as follow:
The suspense account shows a debit balance of $100. What could be due to?
A. Entering 50 received from A Turner on the debit side of A Turner’s account
B. Entering 50 received from A Turner on the credit side of A Turner’s account
C. Undercasting the sales day book by $100
D. Undercasting the purchases account by 100I chose A answer because we had cash received debit 50 but the wrong sice made in receivable so first I open suspense and enter debit to correct…second I enter the debit the suspense account again for the true transaction …so That leads to balance in suspense account is 100
But this is wrong?? Why? Could you tell me and give me a explanation for answer D?A Turners account is not part of double entry and therefore does not affect the trial balance.
The purchases account is part of the double entry and will appear on the trial balance. It is a debit balance but since it is too low, the suspense account will have a debit of 100.
You need to watch the lectures on Books of Prime Entry.
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