Accounting 9706 · AS & A Level · Reconciliation and verification

Reconciliation and verification — practice question

As part of double entry, a business keeps control accounts. The business’s trial balance was out of balance, so the discrepancy was entered in a suspense account. When the figures were checked, these errors were discovered: The purchases journal had been overcast by $300$. Discounts allowed of $100$ had been entered on the credit side of the discounts received account. What was the balance on the suspense account before these errors were corrected?

  • A$200$ credit
  • B$200$ debit
  • C$400$ credit
  • D$400$ debit

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