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Suspense Account

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Suspense Account

  • This topic has 3 replies, 2 voices, and was last updated 4 years ago by AvatarJohn Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • June 2, 2021 at 10:33 am #622760
    Avatarmaximus07
    Participant
    • Topics: 446
    • Replies: 437
    • ☆☆☆☆

    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.

    June 2, 2021 at 3:49 pm #622790
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54836
    • ☆☆☆☆☆

    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.

    June 2, 2021 at 11:06 pm #622854
    Avatarmaximus07
    Participant
    • Topics: 446
    • Replies: 437
    • ☆☆☆☆

    Thank you

    June 3, 2021 at 7:33 am #622882
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54836
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Suspense Account’ is closed to new replies.

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