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Suspense Account

MM075y ago
Trial balance totals of Gamma at 30 September 20X3 are: Debit $992,640 Credit $1,026,480 Which two of the following possible errors could, when corrected, cause the trial balance to agree? Errors 1. A payment of $6,160 for insurance has not been entered in the accounts. 2. The balance on the motor expenses account $27,680 has incorrectly been listed in the trial balance as a credit. 3 $6,160 proceeds from the sale of a motor vehicle have been posted to the debit of motor vehicles asset account. 4 The balance of $21,520 on the rent payable account has been omitted from the trial balance. A Errors 1 and 2 B Errors 2 and 3 C Errors 2 and 4 D Errors 3 and 4 My question is that the third error is trying to say exactly what mistake we have done. 1) Like we have to do debit Cash or Bank but we debited Motor Vehicle. 2) We had to credit Motor Vehicle Account and but in error we debited it.
John MoffatJohn MoffatTutor5y ago#1
There are two mistakes. It has been posted to the wrong account (it should have been to the disposal account), although miscasting does not stop the trial balance balancing. Secondly, they have made a debit entry when there should have been a credit entry. The only two errors that when corrected will cause the TB to balance are 2 and 4.
MM075y ago#2
Thank you
John MoffatJohn MoffatTutor5y ago#3
You are welcome :-)
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