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JAMB Principles of Accounts 2010 Question 5

Question 5

Correction of Errors and Suspense Account

If stationery bought for ₦200 has been entered as ₦2000. To correct this error

  1. A.debit stationery with ₦2,200
  2. B.credit stationery with ₦1800
  3. C.debit stationery with ₦1800
  4. D.credit stationery with ₦2200.
Show the answer and explanation

Answer: B (credit stationery with ₦1800)

Explanation

Stationery was overstated by 2 000 − 200 = ₦1 800, so credit stationery with ₦1 800.