Gce Model Questions Vol1 2022 Financial Accounting Question 10

Practice objective / multiple choice question 10 from the 2022 Gce Model Questions Vol1 Financial Accounting examination.

Gce Model Questions Vol1 2022 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 10 GCE_MODEL_QUESTIONS_VOL1 • 2022 • FINANCIAL_ACCOUNTING • objective

During the preparation of the trial balance, a difference of \(\text{₦}4,500\) (debit side higher) was found. Investigation revealed that a credit sale of \(\text{₦}4,500\) was mistakenly recorded as a debit to the Purchases account. What correcting journal entries should be passed, using the suspense account, to rectify the trial balance?

Answer Options

A. 1) Debit Purchases ₦4,500, Credit Suspense ₦4,500; 2) Debit Suspense ₦4,500, Credit Sales ₦4,500
B. 1) Debit Sales ₦4,500, Credit Purchases ₦4,500; 2) Debit Suspense ₦4,500, Credit Suspense ₦4,500
C. 1) Debit Suspense ₦4,500, Credit Sales ₦4,500; 2) Debit Purchases ₦4,500, Credit Suspense ₦4,500
Correct Answer D. 1) Debit Suspense ₦4,500, Credit Purchases ₦4,500; 2) Debit Sales ₦4,500, Credit Suspense ₦4,500
Correct Answer
D
Correct Option:
1) Debit Suspense ₦4,500, Credit Purchases ₦4,500; 2) Debit Sales ₦4,500, Credit Suspense ₦4,500

About This Question

This is Gce Model Questions Vol1 2022 Financial Accounting Question 10. It is one of the objective questions from the 2022 Gce Model Questions Vol1 Financial Accounting examination.

Difficulty level: Medium .

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