Accounting 9706 · AS & A Level · Reconciliation and verification

Reconciliation and verification — practice question

A business left out discounts allowed of $\$700$ from its trial balance. Over the year, a machine was sold for cash, $\$500$, but the only accounting record entered was a debit to the bank account. What is the balance on the suspense account before these errors are corrected?

  • A$\$200$ debit
  • B$\$1200$ debit
  • C$\$200$ credit
  • D$\$1200$ credit

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