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18.10 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
why isnt A the right answer since would omitting a sale from a sales ledger decrease sale which has a credit balance and make debit unequal to credit and lead to creation of suspense account
The sales ledger is another name for the receivables ledger. It is not usually part of the double entry and therefore omitting an entry will not affect the trial balance.
Even if the company did have the ledger as part of the double entry, it should be a debit in the customers account. If a debit entry is missed out the the debits are too low which would mean a debit balance in the suspense account, not a credit balance.
Have you watched my free lectures on suspense accounts and on books of prime entry?
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