- This topic has 1 reply, 2 voices, and was last updated 1 year ago by
.
- Posts
Blunder Boy’s trial balance did not balance and a suspense account was opened to restore equality. It was discovered that
1.sales day book has been overcast by $270
2.an invoice for $2600 was incorrectly entered in the sales day book at $6200
3.a cheque for $500 from a credit customer had been debited to payable in errorwhat was the original balance in suspense account?
sir i got the answer for this as 2330 but the correct one is 1000 please help me to solve this?
The errors in the sales day book will not stop the trial balance balancing because even though the total is wrong, it is the same wrong figure that is entered in both the sales account and the receivables account.
It is only the cheque entered as a debit instead of a credit that will stop the trial balance from balancing and therefore be an entry in the suspense account.
Do watch my free lectures on books of prime entry 🙂
- You must be logged in to reply to this topic.