During the preparation of a trial balance the following figures were recorded: Sales $ \text{₦}150{,}000 $ (credit), Purchases $ \text{₦}80{,}000 $ (debit), Cash $ \text{₦}20{,}000 $ (debit) and a Suspense Account with a debit balance of $ \text{₦}5{,}000 $. It was later discovered that a purchase invoice of $ \text{₦}12{,}000 $ had been entered twice - once as a debit to Purchases and once as a credit to the Suspense Account. After correcting the error, what is the revised profit and what is the new balance of the Suspense Account?

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Revised profit = ₦82,000; Suspense balance = debit ₦17,000

Gce Model Questions Vol1 2024 Financial Accounting Question 12

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