Neco 2023 Financial Accounting Question 16

Practice objective / multiple choice question 16 from the 2023 Neco Financial Accounting examination.

Neco 2023 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 16 NECO • 2023 • FINANCIAL_ACCOUNTING • objective

The trial balance of a company shows total debits of \(150,000\) and total credits of \(150,000\). It is later discovered that the Sales account was recorded as \(45,600\) instead of the correct amount \(54,600\) (a transposition error). All other account balances are correct.\n\n(a) What should be the corrected total of the trial balance (debits and credits) after fixing the error?\n\n(b) What amount should be entered in the Suspense Account (as a credit) to restore equality?

Answer Options

A. Corrected totals: \(150,000\) debits and \(150,000\) credits; Suspense Account credit = \(9,600\)
Correct Answer B. Corrected totals: \(150,000\) debits and \(150,000\) credits; Suspense Account credit = \(9,000\)
C. Corrected totals: \(159,600\) debits and \(159,600\) credits; Suspense Account credit = \(9,000\)
D. Corrected totals: \(150,000\) debits and \(150,000\) credits; Suspense Account credit = \(0\)
Correct Answer
B
Correct Option:
Corrected totals: \(150,000\) debits and \(150,000\) credits; Suspense Account credit = \(9,000\)

About This Question

This is Neco 2023 Financial Accounting Question 16. It is one of the objective questions from the 2023 Neco Financial Accounting examination.

Difficulty level: Medium .

View More Neco 2023 Financial Accounting Questions More Neco Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support