Accounting 9706 · AS & A Level · The accounting system

The accounting system — practice question

At the close of the financial period, a trader’s trial balance failed to balance, so a suspense account was opened. The errors below were then found. 1. A purchase of inventory costing $650 had not been entered in the accounting records. 2. A vehicle bought by cheque had been credited to bank, but debited to motor expenses. 3. The discount received of $300 had been correctly posted to the purchases ledger control account and was debited to discount allowed account. 4. The purchases account for the year had been totalled incorrectly. Which errors would have an effect on the suspense account?

  • A1, 2 and 3
  • B1 and 3 only
  • C2 and 4 only
  • D3 and 4 only

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