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In a trial balance where control accounts are maintained:
1.SRDB was overcast by 270
2.invoice for 2600 was entered in SDB as 6200
3.cheque for 500 from a credit customer had been debited to creditors in errorWhat was the original balance on suspense a/c?
Sir, for this question, 2 wouldnt be included right? and after correcting errors 1 and 3
my ans is 730 credit, but thats not in the options.. could you please help me with where am I going wrong?
I assume that by SRDB you mean the sales return day book, and that by SDB you mean the sales day book (the exam will not use these abbreviations).
If so, then only error 3 will stop the trial balance balancing and therefore affect the suspense account. Errors in the day books mean that both accounts in the general/nominal ledge will be wrong, but the debits and credit will still be equal.
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But sir, control accounts are maintained,
and undercast/overcast (totalling error) only affects control account and not the general ledger account……..
Don’t you think error 1 should be taken in account?The control account is a general/nominal ledger account!
We take the total from the sales returns day book and debit sales and credit receivables – both accounts are in the general ledger.
Again, do watch my free lectures on this.
Oh my bad, sorrrryy. I get it, i got confused with memorandum and general Thank you!
Ok, sir one lasssst question please,
what if control accounts weren’t maintained… how would we treat error number 1 in that case?If there were no control accounts then there would be an entry needed in the suspense account because the (correct) individual amounts would have been posted to the individual receivables accounts, but the (wrong) total figure would have been posted to the sales account.
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