• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

PQ Awards Nominations

Please help us to win one of the PQ Magazine awards and send in the voting form >>
You can nominate us in any or all of the following categories: Online College of the Year, Study Resource of the Year, Private Sector Lecturer of the Year, and Accountancy Personality of the Year.

Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>

suspense account cash refund

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › suspense account cash refund

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • October 24, 2015 at 4:30 am #278647
    elle
    Member
    • Topics: 18
    • Replies: 20
    • ☆

    Hi
    Please help.
    The cash refund due to customer a was correctly treated in the cash book and then credited to the accounts receivable ledger account of customer b.
    I would debit receivables of customer b and credit receivables of customer a which Is wrong because a suspense entry is needed here according to the answer.
    Why is a suspense account entry needed here?

    October 24, 2015 at 8:34 am #278684
    John Moffat
    Keymaster
    • Topics: 56
    • Replies: 51599
    • ☆☆☆☆☆

    You have already asked this in other F3 forum and received the correct answer!!

    A cash refund is a repayment of cash to the customer.
    So the correct entry is credit cash and debit the customer.

    What they have done is credit cash and credit the customer. So two credits, so the trial balance will not balance, so an entry is needed in suspense.

    To correct the mistake, we need to debit customer B (to remove the wrong entry) and debit customer A (which is what the entry should have been). The double entry for both corrections is to credit the suspense account.

    (If you are unsure what a refund it then you need to watch the free lecture on control accounts (it is simply a repayment of cash to the customer – maybe because they had paid us too much))

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

 

ACCA My Exam Performance for non-variant Applied Skills exams is available NOW

NEW! Download the ACCA Pass Guide

FREE Verifiable CPD for ACCA Members

ACCA mock exams and debrief videos

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

Donate

If you have benefited from OpenTuition please donate.

ACCA CBE 2023 Exams

Instant Poll * How was your exam, and what was the result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • chimporera on CIMA P2 Chapter 11 Test
  • chimporera on CIMA P2 Chapter 13 Test
  • Chong on Conceptual Framework – ACCA SBR lecture
  • mariyaaa on Foreign exchange risk management (1) Part 4 – ACCA (AFM) lectures
  • John Moffat on Introduction to Financial Accounting – ACCA Financial Accounting (FA) lectures

Copyright © 2023 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy