Neco Model Questions Vol1 2021 Financial Accounting Question 8
Practice objective / multiple choice question 8 from the 2021 Neco Model Questions Vol1 Financial Accounting examination.
After posting all transactions for the month, the trial balance shows a debit excess of ₦7,000. The accountant therefore entered a suspense account with a debit balance of ₦7,000. Later two errors are discovered: 1. A purchase of ₦9,000 was recorded as ₦5,000 (both debit and credit were understated by ₦4,000). 2. A cash sale of ₦12,000 was recorded only as a credit to Sales; the corresponding debit to Cash was omitted. What is the correct balance of the suspense account after correcting both errors?
Answer Options
About This Question
This is Neco Model Questions Vol1 2021 Financial Accounting Question 8. It is one of the objective questions from the 2021 Neco Model Questions Vol1 Financial Accounting examination.
Difficulty level: Medium .
Master the Exam!
You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.