ACCA Applied Knowledge · Financial Accounting · Suspense accounts
Which of the following is NOT a likely cause of a balance on a suspense account?
Posting a whole transaction twice, with both debit and credit duplicated, does not cause a suspense balance because total debits still equal total credits. One-sided entries, a transposition on one side, or an unidentified receipt do create suspense balances.
- APosting the same transaction twice to the same ledger account with both the debit and credit duplicatedCorrect
- BA one-sided entry where only a debit was posted
- CPosting a debit of $540 as $450 with the credit correct
- DA cash receipt for which the bookkeeper does not know the correct account
Explanation
Duplicating both the debit and the credit keeps the trial balance in balance, so it creates no suspense difference. A one-sided entry and a transposition on one side unbalance the trial balance. An unidentified receipt is deliberately posted to suspense until it is identified.
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.
More Suspense accounts questions
- A trial balance did not agree, and the difference of $900 was debited to a suspense account. Investigation showed that a purchase of $450 fr…
- A trial balance is extracted and the total of debit balances exceeds the total of credit balances by $900. Which one of the following errors…
- A trial balance shows total debits of $482,300 and total credits of $480,900. The difference is posted to a suspense account. Which of the f…
- Orion Ltd's trial balance has a credit suspense balance of $2,700. Three errors are found: (1) a cash sale of $1,500 was debited to the bank…
- Which one of the following is an error of omission?
- Which one of the following errors will be revealed by extracting a trial balance and so requires a suspense account entry when found?