O-LevelAccountingVerification of accounting recordsOct/Nov 2024Paper 1 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?

Q: What topic does this question test?

This question tests Verification of accounting records in O-Level Accounting (syllabus code 7707). It is worth 1 mark.

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

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

📋 Examiner Report & Trap Analysis

Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

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About This O-Level Accounting Question

Topic

This multiple-choice question tests Verification of accounting records in O-Level Accounting (syllabus code 7707). It is worth 1 mark.

Source

This question appeared in the Cambridge O-Level Accounting Oct/Nov 2024 examination, Paper 1 Variant 3.

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