Waec Model Questions Vol1 2018 Financial Accounting Question 4

Practice objective / multiple choice question 4 from the 2018 Waec Model Questions Vol1 Financial Accounting examination.

Waec Model Questions Vol1 2018 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 4 WAEC_MODEL_QUESTIONS_VOL1 • 2018 • FINANCIAL_ACCOUNTING • objective

A trial balance for ABC Company shows total debits of ₦1,250,000 and total credits of ₦1,237,500, leaving a debit excess of ₦12,500. It is discovered that a purchase of equipment costing ₦12,500 was recorded twice in the Purchases account (debit side) but only once in the Cash Book (credit side). What entry should be made to the suspense account to bring the trial balance into balance, and on which side (debit or credit) should the amount be posted?

Answer Options

A. Debit suspense account ₦10,000
B. Debit suspense account ₦12,500
C. Credit suspense account ₦10,000
Correct Answer D. Credit suspense account ₦12,500
Correct Answer
D
Correct Option:
Credit suspense account ₦12,500

About This Question

This is Waec Model Questions Vol1 2018 Financial Accounting Question 4. It is one of the objective questions from the 2018 Waec Model Questions Vol1 Financial Accounting examination.

Difficulty level: Medium .

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support