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WAEC Financial Accounting 2020 Question 11

Question 11

Correction of Errors and Suspense Account

A total of D 9,160 was entered in the sales account as D 9,610. To correct this error: debit

  1. A.Sales Account D 450; credit Sales Day Book D 450
  2. B.Sales Day Book D 450; credit Sales Account D 450
  3. C.Sales Account D 450; credit Suspense Account D 450
  4. D.Suspense Account D 450; credit Sales Account D 450.
Show the answer and explanation

Answer: C (Sales Account D 450; credit Suspense Account D 450)

Explanation

Sales were over-credited by 450, so debit Sales 450; the other side goes to suspense.