Accounting 0452 · IGCSE · Correction of errors

Correction of errors — practice question

Mandy’s trial balance did not balance. The $620 difference was entered into a suspense account. In the trial balance, the suspense account’s balance appeared on the debit side. Which error had led to the difference?

  • ADiscounts allowed of $310 had been credited to the discount received account.
  • BDiscounts received of $310 had been credited to the discount allowed account.
  • CThe value of closing inventory had been overstated by $620.
  • DThe value of closing inventory had been understated by $620.

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