- This topic has 3 replies, 2 voices, and was last updated 9 years ago by
.
- Posts
A trial balance fails to agree and the bookkeeper finds the following errors.
1 A bank overdraft of $100 was shown as a debit in the trial balance.
2 A telephone bill for $400 was debited to the insurance account.
3 A cash purchase of $160 was entered in the purchases account as $150; the
purchase was entered correctly in the cash account.The bookkeeper opens a suspense account in order to correct the errors.
What is the opening entry in the suspense account?My answer is 190 Dr
But in the answer in kaplan in 190 Cr? It think the kaplan is wrong?To correct the errors they will do the following:
1. credit overdraft 200, debit suspense 200
2. no effect on the suspense
3 debit purchases 10, credit suspense 10
So the correcting entries mean debiting suspense with 190 in total.
However, since the balance on the suspense must end up being zero, it means that the opening balance (which is what is asked for) must have been a credit of 190.
- You must be logged in to reply to this topic.