Waec Model Questions Vol1 2023 Financial Accounting Question 40

The trial balance of a small enterprise is shown below (amounts in Naira). The only discrepancy is a debit balance of ₦2,500 shown in the Suspense Account. All other balances are believed to be correct except possibly one. Identify the erroneous ledger account and state the correct amount for that account.\n\n**Debits**\n- Cash ........................................... 200,000\n- Rent Expense .................................... 42,500\n- Salaries ........................................ 85,000\n- Purchases ...................................... 210,000\n- Discount Allowed .............................. 5,000\n- Suspense Account .............................. 2,500\n\n**Credits**\n- Sales ........................................... 500,000\n- Capital ......................................... 30,000\n- Discount Received .............................. 10,000\n- Purchases Returns .............................. 5,000\n\nWhich account contains the error and what should its correct balance be?