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Hi I am very confused with correction or errors using suspense account.
Here’s the question:
1. petty cash balance, $80, omitted from the trial balance
2. The cash account of $500 had been omitted from the list of balances.
Ans:
My answer is:
1. Dr petty cash
Cr Suspense
2. Dr cash
Cr Suspense
is this correct? and why?You have asked this in the Paper F2 forum, but suspense accounts are only asked in Paper F3 – they are not in the syllabus for Paper F2.
If those are choices given in the exam, then what you have written would be correct.
However, strictly the debit entries are not real entries (and certainly won’t be recorded in the books of account). The reason is that the accounts themselves are correct – the balances do exist – it is simply the fact that they have not been listed in the trial balance that is stopping the trial balance from balancing.
Have you watched my free lectures on suspense accounts?
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