ACCA Applied Knowledge · Financial Accounting · Suspense accounts
Which of the following errors would cause a trial balance to be out of balance, so that a suspense account would be needed?
Recording a purchase with a debit and a credit of different amounts makes total debits differ from total credits, so the trial balance does not balance and a suspense account is needed. The other errors keep debits equal to credits.
- AA purchase of goods was recorded by debiting purchases and crediting the supplier with a different amountCorrect
- BA credit sale was omitted completely from the books
- CA payment of rent was debited to the electricity expense account
- DA cash receipt from a customer was debited to cash and credited to sales
Explanation
Debiting and crediting different amounts means total debits no longer equal total credits, so the trial balance fails to agree. Complete omission keeps both sides equal, a wrong-account posting keeps equal amounts, and crediting sales instead of receivables also keeps debits equal to credits.
Did you get it right without looking?
One question tells you little. A timed set on Suspense accounts shows your real accuracy, how long you take and where you lose marks.
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