Neco 2018 Financial Accounting Question 32
Practice objective / multiple choice question 32 from the 2018 Neco Financial Accounting examination.
After posting all entries, a trial balance shows total debits of ₦1,150,000 and total credits of ₦1,130,000, giving a debit excess of ₦20,000. The accountant discovers the following errors: 1. A purchase of ₦8,000 was recorded twice in the Purchases account but only once in the Creditors account. 2. A sales invoice of ₦5,000 was omitted from the Sales account. 3. A bank interest of ₦2,000 was entered as a debit to Interest Expense and, by mistake, also debited to the Bank account instead of being credited. After correcting these three errors, what amount should be transferred to the suspense account and should the suspense account carry a debit or a credit balance?
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About This Question
This is Neco 2018 Financial Accounting Question 32. It is one of the objective questions from the 2018 Neco Financial Accounting examination.
Difficulty level: Medium .
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