O-LevelAccountingVerification of accounting records7707/13 · Oct/Nov 2024 · Q91 Mark

Mandy's trial balance failed to agree. The difference of $620 was placed in a suspense account. The suspense account's balance was shown on the debit side of the trial balance. Which error had caused the difference?

ADiscounts allowed of $310 had been credited to the discount received account.

BDiscounts received of $310 had been credited to the discount allowed account.

CThe value of closing inventory had been overstated by $620.

DThe value of closing inventory had been understated by $620.

✓ Correct answer

A: Discounts allowed of $310 had been credited to the discount received account.

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Topic: Verification of accounting records, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, Oct/Nov 2024 Paper 1 Variant 3, question 9.

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Mandy's trial balance failed to agree. The difference of $620 was placed in a suspense account. The suspense account's balance was shown on the debit side of the trial balance. Which error had caused the difference?

✓ Correct answer

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