[murphyjohn89]

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?

[murphyjohn89]

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?

[murphyjohn89]

Hi What app did you use i wouldn’t mind checking it out. Thanks

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