Neco 2024 Financial Accounting Question 34

Practice objective / multiple choice question 34 from the 2024 Neco Financial Accounting examination.

Neco 2024 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 34 NECO • 2024 • FINANCIAL_ACCOUNTING • objective

The trial balance of a sole trader includes the following balances: Cash Dr \(12,000\), Purchases Dr \(8,000\), Sales Cr \(15,000\), Capital Cr \(5,000\) and a Suspense Account Dr \(2,000\). It is discovered that a purchase of \(3,000\) was mistakenly recorded on the credit side instead of the debit side. Identify the amount that must be transferred from the Suspense Account to correct the error and state the corrected balance of the Suspense Account.

Answer Options

Correct Answer A. Transfer 3,000 to Purchases; Suspense Account will have a credit balance of 1,000
B. Transfer 3,000 to Purchases; Suspense Account will have a credit balance of 3,000
C. Transfer 2,000 to Purchases; Suspense Account will have a credit balance of 2,000
D. Transfer 3,000 to Purchases; Suspense Account will have a debit balance of 1,000
Correct Answer
A
Correct Option:
Transfer 3,000 to Purchases; Suspense Account will have a credit balance of 1,000

About This Question

This is Neco 2024 Financial Accounting Question 34. It is one of the objective questions from the 2024 Neco Financial Accounting examination.

Difficulty level: Medium .

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