Question 1

**Section A**

A trial balance failed to agree, and a suspense account was opened with a debit balance of $800. The following errors were subsequently discovered:
1. A cash payment of $300 for stationery was credited to the cash book but no other entry was made.
2. A sales invoice for $500 was completely omitted from the books.

What will be the balance on the suspense account after these errors are corrected?

Accepted Answer

Determine which errors cause an imbalance in the trial balance. Complete omissions do not affect the suspense account. Single-sided entries do. Post the correction to the suspense account to find the new balance.

Question 2

What mistakes do candidates make on this ACCA question?

Accepted Answer

Trying to correct complete omissions through the suspense account.

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA FA — Financial Accounting Practice Exam 1

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