Neco Model Questions Vol1 2023 Financial Accounting Question 8

Practice objective / multiple choice question 8 from the 2023 Neco Model Questions Vol1 Financial Accounting examination.

Neco Model Questions Vol1 2023 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 8 NECO_MODEL_QUESTIONS_VOL1 • 2023 • FINANCIAL_ACCOUNTING • objective

The trial balance of LMN Ltd as at 31 December shows total debits of \(452,000\) and total credits of \(447,500\). The accountant believes the discrepancy is caused by a single error in the books of original entry. Identify the most likely type of error and state the amount that should be transferred to the suspense account to make the trial balance agree.

Answer Options

A. Transposition error; credit suspense account with 5,000
B. Single‑sided (addition) error; debit suspense account with 4,500
Correct Answer C. Single‑sided (addition) error; credit suspense account with 4,500
D. Single‑sided (addition) error; credit suspense account with 5,500
Correct Answer
C
Correct Option:
Single‑sided (addition) error; credit suspense account with 4,500

About This Question

This is Neco Model Questions Vol1 2023 Financial Accounting Question 8. It is one of the objective questions from the 2023 Neco Model Questions Vol1 Financial Accounting examination.

Difficulty level: Medium .

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