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The cost of an item of plant $48,000 had been entered in the cash book and in the plant account as $4,800.
Depreciation at the rate of 10% per year ($480) had been charged.sir why isnt this taken to suspence accounts?
A suspense account is only relevant if the debits did not equal the credits.
Here, even though the wrong amount has been entered it is the same wrong amount that has been entered in both accounts.
Do watch my free lectures on suspense accounts. The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.
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