Question 1

Section A

A suspense account has a debit balance of $600. The following errors are discovered:
1. A payment for rent of $400 was credited to the bank but no other entry was made.
2. The sales day book was undercast by $200.

What will be the balance on the suspense account after correcting these two errors? (Enter the number only. If the balance is zero, enter 0)

Accepted Answer

Set up a T-account for Suspense starting with $600 Dr. Error 1: Missing debit of $400 for rent. Entry: Dr Rent 400, Cr Suspense 400. Error 2: Sales undercast means missing credit of $200. Entry: Dr Suspense 200, Cr Sales 200. Calculate final balance.

Question 2

What mistakes do candidates make on this ACCA question?

Accepted Answer

Putting the corrections on the wrong side of the suspense account.

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA FA — Financial Accounting Practice Exam 5

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