Accounting 9706 · AS & A Level · Reconciliation and verification

Reconciliation and verification — practice question

A suspense account was set up to show the discrepancy on a trial balance. Following more checks, the errors below were found. 1. Discount received of $250 had been entered on the debit side of the discount allowed account. The posting to the trade payable account had been done correctly. 2. Electricity refund of $170, recorded correctly in the cash book, had been classified as electricity expense. 3. Machine installation of $440 had been recorded as machine repairs. Once the errors had been corrected, the trial balance balanced. What was the opening credit balance of the suspense account?

  • A$160
  • B$400
  • C$670
  • D$840

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