Neco Model Questions Vol1 2024 Financial Accounting Question 27
Practice objective / multiple choice question 27 from the 2024 Neco Model Questions Vol1 Financial Accounting examination.
The trial balance of a company is as follows:\n\nDebit side - Purchases \(45,000\), Rent expense \(12,000\), Salaries expense \(20,000\), Drawings \(10,000\), Suspense \(5,000\), Cash \(108,000\).\nCredit side - Sales \(120,000\), Capital \(50,000\), Loan \(30,000\).\n\nTwo errors are discovered:\n1. A purchase of \(8,000\) was omitted from the books.\n2. A sales return of \(3,000\) was mistakenly recorded as a debit to Purchases instead of a credit to Sales Returns.\n\nAfter correcting these errors, (a) what amount should be transferred from the suspense account to bring the trial balance to balance? (b) What is the corrected net profit for the period?
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About This Question
This is Neco Model Questions Vol1 2024 Financial Accounting Question 27. It is one of the objective questions from the 2024 Neco Model Questions Vol1 Financial Accounting examination.
Difficulty level: Medium .
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