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Hi John,
1)how can I distinguish which entry affects the Suspense account or Journal? while solving the question some corrections appears on Suspense account some of them not.
2)$8,980 – the total of the sales returns book for September 20X8, had been credited to the purchases returns account. Could you explain this transaction, too?
what do they mean “had been credited to the purchases returns account.”
does it mean that Sales return Cr 8980 and Dr Purchase return accountI took this question from “https://www.accaglobal.com/gb/en/student/exam-support-resources/fundamentals-exams-study-resources/f7/technical-articles/suspense-accounts.html”
The answer was : CR suspense account 17960 Dr Sales return 8980 and DR Purchase return 8980Thank you in advance!!!??
You have asked your first question as a separate post and I have answered that post.
For your second question, sales returns should have been debited to the sales returns account (not credited to the purchase returns). Since there was a debit entry when there should have been a credit entry, the trial balance will not have balanced and therefore there will have been a suspense account created.
They should not have credited the purchase returns account, and so to remove it we debit purchase returns and credit the suspense account with 8,980.
They should have debited the sales returns account, but have not done so. So we debit the sales returns account and credit the suspense account with 8,980.
So the total amount credited to the suspense account is 8,980 + 8,980 = 17,960.
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