Omitting interest paid of $324 from the trial balance.
Interest expense of $324 has not been transferred to the trial balance. When the interest was paid there would have been a credit to the bank and a debit to the interest expense account. This has not been recognised on the debit side of the trial balance and therefore, as this is missing, a suspense balance of $324 would arise on the debit side of the trial balance.
------------
How do we conclude that only the debit side of the entry was missing?
Ask the Tutor ACCA FA
Suspense account
3y ago#1Because the trial balance is a list of balances and if the interest expense has not been listed then it has to mean the balance on the interest expense account has not been listed (which is a debit balance that is therefore missing).
The question does not say that any of the double entry is missing, just that the balance has not been listed.
So difficult to grasp- when I read 'interest paid was missing'- I think the word PAID is related to cash so that means a credit is missing :( :(
3y ago#3It does take time to get used to the wording.
Thank you for all your help answering my questions! Its soo appreciated! I just passed with an 87% :)
3y ago#5That is great news. Many congratulations - especially getting such a high mark :-) :-)
This topic is locked — no new replies.