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WAEC Financial Accounting 2015 Question 13

Question 13

Correction of Errors and Suspense Account

The accounting entry to correct sales day book overcast is

  1. A.Debit Sales Account and Credit Debtors Account.
  2. B.Debit Suspense Account and Credit Sales Account.
  3. C.Debit Debtors Account and Credit Suspense Account.
  4. D.Debit Sales Account and Credit Suspense Account.
Show the answer and explanation

Answer: D (Debit Sales Account and Credit Suspense Account.)

Explanation

An overcast day book total overstates the sales credit only, so debit sales to reduce it and credit suspense.