Accounting 9706 · AS & A Level · Reconciliation and verification

Reconciliation and verification — practice question

The trial balance did not balance, and the book-keeper identified the following mistakes. 1 A bank overdraft of $100 had been recorded as a debit in the trial balance. 2 A cash purchase of $160 had been entered in the purchases account as $150; the purchase had been recorded correctly in the cash account. 3 A telephone invoice for $400 had been debited to the insurance account. The book-keeper then opened a suspense account to correct the mistakes. What was the opening entry in the suspense account?

  • Acredit $190
  • Bcredit $210
  • Cdebit $60
  • Ddebit $550

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