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John,
I’m working on question 18.10 in the BPP Revision Kit. I’m looking at the answer and it says that A would create a debit balance. If a suspense has a credit balance, that means that the Debits > Credits on the trial balance, so in A, if we omit a sale from the sales, we have a 0 on the credit side of the Sales account where there should be a $130 (debit Rec, credit sales), making the debit side > than the credit side of the trial balance.. How would this create a debit balance?
Thank you,
RachelIf the suspense account has a credit balance then it does mean that the debits on the trial balance are more than the credits.
With regard to A, if the sales (receivables) ledger was not part of the double entry (as is normally the case) then it would have no effect at all.
If the sales (receivables) ledger is part of the double entry, then their should have been a debit on the customers account, and if this has been omitted the debits will be too small.(The sales ledger is not the sales account – it is another name for the receivables ledger. Our free lectures on Books of Prime Entry will help you.)
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