Forums › ACCA Forums › ACCA FA Financial Accounting Forums › Suspense accounts…..plz show ur workings
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- April 2, 2012 at 10:45 pm #52090
23. Samuel’s trial balance did not balance so he opened a suspense account with a debit balance of $346. Control accounts are maintained for receivables and payables. Samuel discovered the following:
1. The sales day book was undercast by $400
2. Purchases of $520 from the purchases day book have only been recorded in the payables ledger control account
3. Profit on sale of non-current assets of $670 had been recorded in the sundry income account as $760What is the remaining balance on Samuel’s suspense account after these errors have been corrected?
a.) $264 credit
b.) $136 debit
c.) $956 debit
d.) $1,266 debitApril 8, 2012 at 6:05 pm #96058I’m not sure in my workings. Maybe anyone else can express their opinions..
1. doesn’t influence on the difference in suspense a/c (Dr and Cr sides were undercasted)
2. we should Dr susprense a/c $520
3. Entries in suspense a/c will be next:
Dr Sundry income a/c $760
..Cr Sale of non-current assets $670Answer is c. $956 debit
Dr side of Suspense a/c:
Open.balance 346
Purchase 520
Sundry inc.a/c 760
Total of Dr side = 1626Cr side of Suspense a/c:
Sale of non-current asset 670
Balance c/d 956 ( = 1626 – 670)April 9, 2012 at 6:11 am #96059Dr. side of suspense account
opening balance 346closing balance 264
Total 610Cr. side of suspense account
purchases 520
sundry income a/c 90
Total 610Answer is (a)$264 credit
1. sales day book undercast – entries to the sales and receivables ledger control accounts will be equal, but for the wrong amount. this will not result in an imbalance on the trial balance. Thus, not to be considered while preparing suspense account.
2. purchases were only recorded in the payables ledger control account (credit side). Now, the debit side of the entry, purchases need to be recorded. entry is :
Dr. purchases $520
Cr. suspense a/c $5203.sundry income a/c should have been credited with $670. But, it is wrongly credited as $760. Excess amount of 90 (ie, 760 – 670) need to be deducted, i.e, to say, debit the account. entry is:
Dr. sundry income a/c $90
Cr. Suspense a/c $90April 9, 2012 at 3:52 pm #96060I agree with Najiya: answer is a. $264.
My mistake in above workings: I put numbers in wrong side of suspense a/c.April 11, 2012 at 5:26 am #96061Thnks for the help guys 🙂
April 19, 2013 at 3:59 pm #122908thnx guys for help….
April 20, 2013 at 8:53 pm #123039hi Sangria! i am new here, could you please help me out with control account solution because i do not think i get what we did in the class. Thanks
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