Neco 2025 Financial Accounting Question 25

During the preparation of a trial balance the following errors were identified: (i) a purchase invoice of \(\text{₦}12,000\) was omitted; (ii) a sales invoice of \(\text{₦}8,000\) was entered twice; (iii) a cash receipt of \(\text{₦}5,000\) was posted to the bank account instead of the cash account; (iv) a purchase return of \(\text{₦}2,000\) was posted to the Purchases account but the corresponding credit to Creditors was omitted. After posting all entries, the trial balance shows that the debit side exceeds the credit side by \(\text{₦}2,000\). Determine the amount that must be transferred to or from the suspense account to rectify the trial balance and explain the nature of the adjustment.