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A-LevelAccountingReconciliation and verification9706/12 · Oct/Nov 2016 · Q71 Mark

A suspense account has a balance of $450 debit. What has caused this balance in the suspense account?

Amotor expenses of $225, correctly entered in the cash book, and posted to motor expenses as a credit
Bmotor expenses of $225, entered in the cash book as a receipt and posted to motor expenses as a credit
Cmotor expenses of $450, correctly entered in the cash book, and posted to motor vehicles as a debit
Dmotor expenses of $675, entered in the cash book as a credit of $225 and posted to motor expenses as $225 debit

✓ Correct answer

A: motor expenses of $225, correctly entered in the cash book, and posted to motor expenses as a credit

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About this question

Topic
Reconciliation and verification, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source
A-Level Accounting, Oct/Nov 2016 Paper 1 Variant 2, question 7.

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