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Trail Balance, Income statement and suspense account

Forums › ACCA Forums › ACCA FA Financial Accounting Forums › Trail Balance, Income statement and suspense account

  • This topic has 0 replies, 1 voice, and was last updated 7 years ago by teddyangel.
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  • March 4, 2018 at 9:58 am #440028
    teddyangel
    Member
    • Topics: 2
    • Replies: 0
    • ☆

    Trying to prepare an Income statement and balance sheet.

    The trial balance shows that there is a suspense account for £18,000 (on the credit side)

    My question is:

    On further investigation of the suspense account it was discovered that a cash receipt of £18,000 had been posted to the suspense account. This represents the proceeds from the disposal of a piece of equipment that had been bought exactly two and half years ago at a cost of £22,000. The equipment was sold on the last day of the financial year.

    How do i work this out?
    Many thanks

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