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A suspense account shows a credit balance of $130. Which of the following could be due to?
A. Omitting a sale of $130 from the sales ledger
B. Recording a purchase of $130 twice in the purchases account
C. Failing to write off a bad debt of $130
D. Recording an electricity bill paid of $65 by debiting the bank account and crediting the electricity account.Could you please explain why A is not an answer? Thank you for your time.
The sales ledger (i.e. the receivables ledger) is not normally part of the double entry and therefore will not affect the trial balance. (It is not the sales account).
Even if it was part of the double entry, a sale should be debited to the receivables account and since it was not debited, the debit side of the trial balance would be too small and therefore there would be a debit balance on the suspense account.
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