Question 1

A bookkeeper extracted a trial balance that failed to agree. The debits exceeded the credits by $4,500, so a suspense account was opened. It was later discovered that a cash receipt of $4,500 from a credit customer was correctly entered in the cash book but completely omitted from the receivables ledger. What journal entry is required to correct this error and clear the suspense account?

Accepted Answer

Determine what the entry *should* have been, what it *was*, and create the correction. The cash book was debited, but no credit was made. So, make the missing credit to Receivables and debit Suspense.

Question 2

What mistakes do candidates make on this ACCA question?

Accepted Answer

Debiting receivables (thinking a receipt increases the account) or doubling the amount (confusing an omission with a reversal).

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA FA — Financial Accounting Practice Exam 3

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