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.
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?
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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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