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ACCA Applied Knowledge · Financial Accounting · Correction of errors

Which of the following errors would NOT cause a suspense account to be opened?

Debiting rates instead of rent is an error of commission with equal debits and credits, so the trial balance still agrees and no suspense account is needed. The other errors leave one-sided or unequal entries that unbalance the trial balance.

  1. ASales of $800 debited to receivables but not credited to the sales account
  2. BA purchase invoice of $500 recorded as Dr Purchases $500 and Cr Payables $50
  3. CRent paid of $300 debited to the rates account and credited to bankCorrect
  4. DA cash receipt posted to the bank account debit but omitted from the receivables account

Explanation

Debiting the wrong expense account (rates instead of rent) is an error of commission; total debits still equal total credits, so the trial balance balances and no suspense arises. The other options each leave debits and credits unequal.

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