Accounting 9706 · AS & A Level · Reconciliation and verification

Reconciliation and verification — practice question

In the year, a sole trader took $3000 cash out of the business bank account. The accounting entries recorded were a debit of $300 to the drawings account and a credit of $3000 to the bank account. Also, $500 had been left out of the discount received account in the trial balance. What was the suspense account balance before these errors were corrected?

  • A$2200 debit
  • B$2200 credit
  • C$3200 debit
  • D$3200 credit

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