Gce Model Questions Vol1 2020 Financial Accounting Question 14

Practice objective / multiple choice question 14 from the 2020 Gce Model Questions Vol1 Financial Accounting examination.

Gce Model Questions Vol1 2020 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 14 GCE_MODEL_QUESTIONS_VOL1 • 2020 • FINANCIAL_ACCOUNTING • objective

The following trial balance was prepared (all amounts in £, debit unless indicated): Cash 12,000  Accounts Receivable 8,500  Inventory 5,200  Equipment 15,000  Accumulated Depreciation - Equipment 4,000 (cr)  Accounts Payable 6,300 (cr)  Capital 30,000 (cr)  Drawings 2,500  Sales 22,000 (cr)  Purchases 9,500  Rent Expense 1,200  Salary Expense 3,400 The trial balance totals debit £58,200 and credit £58,200, appearing balanced. Later it is discovered that a purchase of £1,200 was mistakenly recorded as a credit to Purchases instead of a debit, and a sales entry of £800 was omitted entirely. After correcting these errors, what amount should be shown in the suspense account to restore balance?

Answer Options

A. £1,600 (debit)
B. £2,000 (credit)
Correct Answer C. £1,600 (credit)
D. £1,200 (credit)
Correct Answer
C
Correct Option:
£1,600 (credit)

About This Question

This is Gce Model Questions Vol1 2020 Financial Accounting Question 14. It is one of the objective questions from the 2020 Gce Model Questions Vol1 Financial Accounting examination.

Difficulty level: Medium .

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