Accounting 0452 · IGCSE · Correction of errors

Correction of errors — practice question

Mandy’s trial balance did not balance. A $620$ discrepancy was entered into a suspense account, and this account balance appeared on the debit side of the trial balance. Which error had led to the discrepancy?

  • 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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