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Hello Mr. Moffat sorry for bothering you again but I have been stuck on this question for a while now and I would appreciate it if you could help me understand this question.
A suspense account was opened when a trial balance failed to agree. The following errors
were later discovered.
1) A gas bill of $420 had been recorded in the gas account as $240.
2) A discount of $50 given to a customer had been credited to discounts received.
3) Interest received of $70 had been entered in the bank account only.
What was the original balance on the suspense account?
A Debit $210
B Credit $210
C Debit $160
D Credit $160
Assuming that you have copied out the whole question, then after the correcting entries have been made in the suspense account the balance on the account will be zero.
Your job is to effectively work backwards and see what the balance must have been before making the correcting entries – i.e. the missing figure in the account.
Okay I understand now. After working backward as you said, the opening balance on the suspense account was $210 on the Debit side. Thank you for your help Sir.
I have a small question regarding practice material. I have been using the BPP revision kit
after watching your lectures, is it necessary to get a Kaplan revision kit if I wish to attain a pass rate more than 70%.
There is no need to use two Revision Kits – the BPP one is fine.