Neco 2018 Financial Accounting Question 22
Practice objective / multiple choice question 22 from the 2018 Neco Financial Accounting examination.
On 5 January the business paid a supplier \(\text{₦}40,000\). The clerk mistakenly recorded only a debit to Cash for \(\text{₦}40,000\) and omitted the corresponding credit to Accounts Payable. On 12 January a credit sale of \(\text{₦}15,000\) was omitted entirely. At the end of the period the trial balance shows total debits exceeding total credits by \(\text{₦}40,000\), and a suspense account with a debit balance of \(\text{₦}40,000\) is created.\n\nWhat amount should be transferred from the suspense account to correct the trial balance?
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About This Question
This is Neco 2018 Financial Accounting Question 22. It is one of the objective questions from the 2018 Neco Financial Accounting examination.
Difficulty level: Medium .
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