Accounting 9706 · AS & A Level · Reconciliation and verification
Reconciliation and verification — practice question
Contador, who is a sole trader, has been given an extract from the trial balance for the year ended 31 March 2015 and does not keep control accounts in his accounting records.
(a(i))[1]
State the purpose of a suspense account.
(a(ii))[3]
State three advantages for a business of having a sales ledger control account.
(b)[8]
Prepare journal entries that correct all of the identified errors. Narratives are not needed.
(c)[3]
Assess how these errors affect the profit for the year.
Worked solution & mark scheme
This 15-mark question has a full step-by-step worked solution and mark scheme. One marking point: “A suspense account is a temporary account that is used to make the trial balance balance.” …