Waec Model Questions Vol1 2018 Financial Accounting Question 32

Practice objective / multiple choice question 32 from the 2018 Waec Model Questions Vol1 Financial Accounting examination.

Waec Model Questions Vol1 2018 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 32 WAEC_MODEL_QUESTIONS_VOL1 • 2018 • FINANCIAL_ACCOUNTING • objective

During the preparation of a trial balance, the total of debit balances is ₦845,000 and the total of credit balances is also ₦845,000. After posting, the balance sheet shows assets of ₦560,000, liabilities of ₦300,000 and capital of ₦150,000, indicating a discrepancy of ₦10,000. Identify the type of error that caused the discrepancy and state the correcting entry using a suspense account.

Answer Options

Correct Answer A. Debit Purchases ₦10,000; Credit Suspense Account ₦10,000
B. Debit Purchases ₦5,000; Credit Suspense Account ₦5,000
C. Debit Sales ₦10,000; Credit Suspense Account ₦10,000
D. Debit Purchases ₦10,000; Credit Suspense Account ₦5,000
Correct Answer
A
Correct Option:
Debit Purchases ₦10,000; Credit Suspense Account ₦10,000

About This Question

This is Waec Model Questions Vol1 2018 Financial Accounting Question 32. It is one of the objective questions from the 2018 Waec Model Questions Vol1 Financial Accounting examination.

Difficulty level: Medium .

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