Errors with Suspense Accounts

$2000 paid for Machinery repairs is entered in the Machinery account.

What kind of error is this?

• commission

• compensating

• original entry

• principle

The totals of a trial balance are:

Debit $46 800 Credit $39 700

The following errors have been discovered:

1 Rent received, $3550, has been included as a debit balance.

2 Cash received from K Greener in settlement of a debt of $2000 has been credited to

B Greener.

What will be the corrected trial balance totals?

• $38 150

• $41 250

• $43 250

• $45 250

The balance of the Discount Allowed account, $200, is entered on the wrong side of the trial

balance. This is the only error.

What will the Suspense account entry to make the trial balance totals agree?

• credit $200

• credit $400

• debit $200

• debit $400

A trial balance does not agree and the difference has been entered in a Suspense account. It is

then found that a receipt of $120 from Natasha, a credit customer, has been recorded correctly in

the cash book but debited in the Sales account.

What will be the correcting journal entry?

• A

• B

• C

• D

How would the balances of the Carriage Inwards and Carriage Outwards accounts be recorded in

the trial balance?

• Carriage inwards credit column

  Carriage outwards debit column

• Carriage inwards credit column

  Carriage outwards credit column

• Carriage inwards debit column

  Carriage outwards debit column

• Carriage inwards debit column

  Carriage outwards credit column

A trader purchased stationery for office use. This was entered in the ledger as purchase of goods

for resale.

Which journal entry will correct this error?

• account debited Purchases

  account credited Stationery

• account debited Stationery

  account credited Purchases

• account debited Stationery

  account credited Sales

• account debited Sales

  account credited Purchases

Sales returns of $90 were incorrectly credited to the Sales Returns account. A Suspense account was opened as a result of this error.

Which journal entry will correct this error?

• account debited Sales Returns $90

  account credited Suspense $90

• account debited Suspense $90

  account credited Sales Returns $90

• account debited Sales Returns $180

  account credited Suspense $180

• account debited Suspense $180

  account credited Sales Returns $180