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ACCA Applied Knowledge · Financial Accounting · Suspense accounts

Which error would NOT be revealed by a trial balance and therefore would not cause a suspense account to be opened?

Debiting plant repairs to plant at cost instead of repairs expense. This is an error of principle: both sides of the entry are for the same amount, so total debits still equal total credits and no suspense account is needed.

  1. AA sales invoice of $600 debited to receivables but not credited to sales
  2. BWages of $350 debited to the wages account but credited to the bank account as $530
  3. CDiscount allowed of $90 credited to the discount account instead of debited
  4. DPlant repairs of $2,000 debited to the plant at cost account instead of repairs expenseCorrect

Explanation

Debiting the wrong account with the right amount on the debit side, while the credit is correct, leaves total debits equal to total credits. This is an error of principle (capitalising repairs), so the trial balance still agrees. The other three options each cause an imbalance.

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