A trial balance did not agree and the book-keeper found the following errors.
1 A bank overdraft of $100 had been shown as a debit in the trial balance.
2 A cash purchase of $160 had been entered in the purchases account as $150; the
purchase was entered correctly in the cash account.
3 A telephone invoice for $400 had been debited to the insurance account.
The book-keeper opened a suspense account in order to correct the errors.
What was the opening entry in 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 May/June 2023 examination, Paper 1 Variant 2 (9706_s23_qp_12.pdf).

Question

A trial balance did not agree and the book-keeper found the following errors.
1 A bank overdraft of $100 had been shown as a debit in the trial balance.
2 A cash purchase of $160 had been entered in the purchases account as $150; the
purchase was entered correctly in the cash account.
3 A telephone invoice for $400 had been debited to the insurance account.
The book-keeper opened a suspense account in order to correct the errors.
What was the opening entry in the suspense account?

Oracle Prep · Accepted Answer

The correct answer is A: credit $190.

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