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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › CORRECTION OF ERROR AND SUSPENSE ACCOUNT
The cost of an item of plant $48,000 had been entered in the cash book and in the plant
account as $4,800. Depreciation at the rate of 10% per year ($480) had been charged
wouldn’t the following error require an suspense account?
since the above error the best i could interpret it that 48000 has been recorded in cash book and 4800 in machinery account
machinery ac debit 48000
to cash ac credit 4800 (this is how i think the error was incorrectly recorded)
so wouldnt this require an suspense account since debit and credit are not equal??
thanks in advance
Yes, it would need an entry in a suspense account.
Was the question asking about the suspense account? I am guessing that it was asking for the adjustment to profit rather than a suspense account.