Waec Model Questions Vol1 2020 Financial Accounting Question 25
Practice objective / multiple choice question 25 from the 2020 Waec Model Questions Vol1 Financial Accounting examination.
A cash receipt of ₦20,000 was mistakenly posted to the Sales account instead of the Cash account. In addition, a purchase invoice of ₦8,000 was omitted entirely (neither posted to Purchases nor to Creditors). After preparing the trial balance, the accountant finds that the debit side exceeds the credit side by ₦12,000. To correct the errors, the accountant decides to use a suspense account. Assuming the cash‑receipt error will be corrected by debiting Suspense and crediting Cash, what amount should be transferred from the suspense account to the Purchases account to correct the omission?
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About This Question
This is Waec Model Questions Vol1 2020 Financial Accounting Question 25. It is one of the objective questions from the 2020 Waec Model Questions Vol1 Financial Accounting examination.
Difficulty level: Medium .
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