Gce Model Questions Vol1 2017 Financial Accounting Question 48
Practice objective / multiple choice question 48 from the 2017 Gce Model Questions Vol1 Financial Accounting examination.
A trial balance shows Sales £80,000, Purchases £3,000, Opening Stock £10,000, Closing Stock £12,000, Salaries £15,000 and Rent £5,000. Two errors have been made: (i) the Purchases figure should have been £30,000 but a zero was omitted, and (ii) a payment of £2,000 to a creditor was mistakenly recorded as a credit to Purchases instead of a credit to Creditors. A suspense account was used to balance the trial balance. After correcting the errors, what should be the balance of the suspense account and how does the reported net profit change?
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About This Question
This is Gce Model Questions Vol1 2017 Financial Accounting Question 48. It is one of the objective questions from the 2017 Gce Model Questions Vol1 Financial Accounting examination.
Difficulty level: Medium .
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