A trial balance does not balance and a suspense account is opened.
Later the following errors are found and the suspense account is cleared.
1 A sales invoice for $1240 had been completely omitted from the books.
2 Purchases had been entered as $85600. The correct amount should have been $87580.
3 Rent paid of $2600 was entered correctly in the cash book but as $6200 in the rent account.
What was the original balance on the suspense account?

Q: What topic does this question test?

This question tests Error Correction and Suspense Accounts in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Q: Which exam paper is this question from?

This question appeared in the Cambridge A-Level Accounting Feb/Mar 2020 examination, Paper 1 Variant 2 (9706_m20_qp_12.pdf).

Question

A trial balance does not balance and a suspense account is opened.
Later the following errors are found and the suspense account is cleared.
1 A sales invoice for $1240 had been completely omitted from the books.
2 Purchases had been entered as $85600. The correct amount should have been $87580.
3 Rent paid of $2600 was entered correctly in the cash book but as $6200 in the rent account.
What was the original balance on the suspense account?

Oracle Prep · Accepted Answer

The correct answer is A: $1620 credit.

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