Accounting 9706 · AS & A Level · Reconciliation and verification

Reconciliation and verification — practice question

Bank interest income, $1800, was entered correctly in the bank account but was posted as interest expense. Which ledger entries would correct this error?

  • ADebit interest expense $1800; Credit suspense $1800
  • BDebit interest income $1800 and interest expense $1800; Credit suspense $1800
  • CDebit suspense $1800; Credit interest income $1800
  • DDebit suspense $3600; Credit interest income $1800 and interest expense $1800

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