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JAMB Principles of Accounts 2004 Question 7

Question 7

Correction of Errors and Suspense Account

A debit in the suspense account will appear in the balance sheet as

  1. A.a current asset
  2. B.a current liability
  3. C.capital
  4. D.drawings
Show the answer and explanation

Answer: A (a current asset)

Explanation

A debit balance is shown with the assets; a suspense debit is shown under current assets until the error is found.