Neco 2025 Financial Accounting Question 33

Practice objective / multiple choice question 33 from the 2025 Neco Financial Accounting examination.

Neco 2025 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 33 NECO • 2025 • FINANCIAL_ACCOUNTING • objective

The trial balance after posting all entries shows a debit total of ₦180,000 and a credit total of ₦176,500, giving a debit excess of ₦3,500. The accountant discovers that a sales return of ₦3,500 was recorded only on the debit side (Debit Sales Returns) and the corresponding credit to Accounts Receivable was omitted. State the amount that should be posted to the Suspense Account to balance the trial balance and provide the correcting entry for the error.

Answer Options

A. Post a credit of ₦3,500 to the Suspense Account. Correcting entry: Debit Sales Returns ₦3,500, Credit Accounts Receivable ₦3,500.
B. Post a credit of ₦2,500 to the Suspense Account. Correcting entry: Debit Accounts Receivable ₦2,500, Credit Sales Returns ₦2,500.
C. Post a debit of ₦3,500 to the Suspense Account. Correcting entry: Debit Accounts Receivable ₦3,500, Credit Sales Returns ₦3,500.
Correct Answer D. Post a credit of ₦3,500 to the Suspense Account. Correcting entry: Debit Accounts Receivable ₦3,500, Credit Sales Returns ₦3,500 (or equivalently Debit Suspense ₦3,500, Credit Accounts Receivable ₦3,500).
Correct Answer
D
Correct Option:
Post a credit of ₦3,500 to the Suspense Account. Correcting entry: Debit Accounts Receivable ₦3,500, Credit Sales Returns ₦3,500 (or equivalently Debit Suspense ₦3,500, Credit Accounts Receivable ₦3,500).

About This Question

This is Neco 2025 Financial Accounting Question 33. It is one of the objective questions from the 2025 Neco Financial Accounting examination.

Difficulty level: Medium .

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