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Fred opened a suspense account with a debit balance of $650. He discovered the following errors:
(1)
Bank interest received of $43 has been debited to the interest payable account and credited to the cash account
(2)
Cash sales of $710 have not been recorded in the sales account; the cash has been debited to cash at bank
(3)
Discounts received of $118 have only been debited to the payables control account
What should the balance on the suspense account be after these errors have been corrected?
$58 Dr
$1,242 Dr
$178 Dr
$1478 Dr
Correct Answer$1,478 Dr
Suspense account
Dr ($)
Cr ($)
Opening balance
650
Discounts received
118
Sales
710
Closing balance
1,478
1,478
1,478
1 $178 Dr – the opening balance is on the wrong side.
2 $1,242 Dr – discounts is on the wrong side.
3 $58 Dr – sales is on the wrong side.
My Question is why is interest received not included in the suspense account in this question?
does anyone notice that the CBE Exam is way harder than the 3 mock exam papers. i got 52,54 and 54 in the 3 of them and got 65 in the mock exam on opentuition and then got 44 in the actual exam. i found that with F1 and F2 aswell, what do ye think?
