Neco 2021 Financial Accounting Question 21

Practice objective / multiple choice question 21 from the 2021 Neco Financial Accounting examination.

Neco 2021 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 21 NECO • 2021 • FINANCIAL_ACCOUNTING • objective

A trial balance shows total debits of \( \text{₦}125,000 \) and total credits of \( \text{₦}124,200 \). The accountant discovers that a purchase invoice of \( \text{₦}1,200 \) was recorded on the debit side only. Determine the amount that should be transferred to the suspense account to balance the trial balance and state the type of error.

Answer Options

A. Transfer ₦800 to the suspense account; the error is a commission error.
B. Transfer ₦400 to the suspense account; the error is a principle of double‑entry error.
Correct Answer C. Transfer ₦400 to the suspense account; the error is an error of omission.
D. Transfer ₦1,200 to the suspense account; the error is a transposition error.
Correct Answer
C
Correct Option:
Transfer ₦400 to the suspense account; the error is an error of omission.

About This Question

This is Neco 2021 Financial Accounting Question 21. It is one of the objective questions from the 2021 Neco Financial Accounting examination.

Difficulty level: Medium .

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